# Musk’s Twitter deal could test Tesla executive bench Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-04-26 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Elon Musk's move to buy Twitter raises concerns at Meta Description: Musk's Twitter acquisition raises fears about management depth at Tesla as he juggles multiple ventures. Investors worry about focus and share prices drop. URL: https://financedigest.com/musks-twitter-deal-could-test-tesla-executive-benchhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-04-26t101601z2lynxnpei3p0dvrtroptp4tesla-results-1736815822184-compressed.jpg) By Hyunjoo Jin SAN FRANCISCO (Reuters) -Elon Musk’s move to buy Twitter for $44 billion has raised concerns about the depth of executive talent at his more valuable company, electric carmaker Tesla Inc, in case his attention is further divided by the social media platform. In announcing the deal on Monday, Musk called Twitter the world’s “digital town square” and talked about protecting free speech, but he also rekindled fears that a man who once acknowledged sleeping on the factory floor during the launch of the Model 3 sedan and last year talked of working “crazy hours” only has so much energy to spare. Tesla feels very much like a startup [despite it being a trillion dollar company,” said Tesla investor](https://www.financedigest.com/despite-the-headwinds-investors-have-important-reasons-to-be-cheerful.html "DESPITE THE HEADWINDS, INVESTORS HAVE IMPORTANT REASONS TO BE CHEERFUL") Ross Gerber, chief executive of wealth management firm Gerber Kawasaki. It’s as big or bigger than the biggest [companies in the world](https://www.financedigest.com/kelda-technology-selected-as-one-of-thetop-30-cleantech-companies-in-the-world.html "Kelda Technology selected as one of thetop 30 cleantech companies in the world"), but it doesn’t have the management infrastructure like other companies. On top of that, Tesla is racing to boost production at new plants in Texas and Berlin [amid supply-chain snarls and higher raw materials costs](https://www.financedigest.com/estonias-pro-kyiv-government-faces-election-test-amid-cost-of-living-crisis.html "Estonia’s pro-Kyiv government faces election test amid cost of living crisis"), as well as get work at its biggest factory in Shanghai back on track during a spike in COVID-19 cases there. Musk said in January [Tesla had too much on its plate and would not introduce new models](https://www.financedigest.com/tesla-cuts-u-s-model-s-and-model-x-prices-between-4-and-9.html "Tesla cuts U.S. Model S and Model X prices between 4% and 9%") like Cybertruck this year. Tesla has managed to outrace its problems, but a heavier pull of his focus by Twitter [worries investors](https://www.financedigest.com/uk-stocks-slip-as-rate-hike-worries-grip-investors.html "UK stocks slip as rate hike worries grip investors"). I fear this is going to be a distraction,” said one [fund manager with a significant position in Tesla](https://www.financedigest.com/with-big-bets-on-musk-these-funds-may-have-a-tesla-problem-in-23.html "With big bets on Musk, these funds may have a Tesla problem in ’23") who asked not to be identified. He’s juggling supply chains and factory delays and the expansion of the [energy storage business](https://www.financedigest.com/europe-burns-cash-to-help-businesses-in-deepening-energy-crisis.html "Europe burns cash to help businesses in deepening energy crisis") and this doesn’t fit at all. Shares of Tesla skidded over 10% on Tuesday, a day after Musk clinched a [deal to buy](https://www.financedigest.com/endeavor-nears-deal-to-buy-vince-mcmahons-wwe-sources.html "Endeavor nears deal to buy Vince McMahon’s WWE -sources") Twitter. Worries about Musk selling [Tesla stock to pay for Twitter deal](https://www.financedigest.com/us-house-committee-chair-concerned-by-tesla-deals-in-china.html "US House committee chair ‘concerned’ by Tesla deals in China") and Musk distraction fears. This causing a bear festival on the [name,” Wedbush Securities](https://www.financedigest.com/mo-rahman-named-as-2017-cyber-security-challenge-uk-champion.html "Mo Rahman named as 2017 Cyber Security Challenge UK champion") analyst Dan Ives said. Tesla [shares have slid about 18% since Musk first disclosed his over 9% stake](https://www.financedigest.com/kuehne-raises-lufthansa-stake-to-17-5-as-germany-sells-remaining-shares.html "Kuehne raises Lufthansa stake to 17.5% as Germany sells remaining shares") in Twitter on April 4. Tesla could not be reached for comment, but one insider at the company who [asked not to be identified said investor concerns were “overdone” and Musk](https://www.financedigest.com/twitters-account-of-deal-shows-musk-signing-without-asking-for-more-info.html "Twitter’s account of deal shows Musk signing without asking for more info") was still heavily engaged at the automaker. Musk also leads [rocket company SpaceX](https://www.financedigest.com/spacex-rocket-sends-first-global-water-survey-mission-into-orbit.html "SpaceX rocket sends first global water survey mission into orbit"), as well as brain-chip startup Neuralink and tunneling venture the Boring Company. [Tesla has seen executive turnover before with the departure of co-founder JB Straubel in 2019 and president Jerome Guillen last year](https://www.financedigest.com/elon-musk-focused-on-getting-self-driving-teslas-in-wide-release-by-year-end.html "Elon Musk: focused on getting self-driving Teslas in wide release by year-end"). Tesla, founded in 2003, has grown into the most valuable automaker but there are only two executives listed along with Musk in its [leadership team](https://www.financedigest.com/tailify-bolsters-leadership-team-with-addition-of-julia-burton-brown-as-commercial-director.html "Tailify bolsters leadership team with addition of Julia Burton Brown as Commercial Director") on the company website, compared with 17 at General Motors and 11 at Volkswagen. Tesla’s current high-profile leadership outside of Musk includes [Chief Financial Officer](https://www.financedigest.com/host-analytics-appoints-chris-labruna-as-chief-revenue-officer.html "Host Analytics Appoints Chris LaBruna as Chief Revenue Officer") Zachary Kirkhorn and Senior Vice President Andrew Baglino, who handles the powertrain development. Both are known to investors from their appearances on [Tesla’s quarterly](https://www.financedigest.com/tesla-posts-record-quarterly-deliveries-after-price-cuts-up-4-from-q4.html "Tesla posts record quarterly deliveries after price cuts, up 4% from Q4") earnings conference calls. Robert Pavlik, senior portfolio [manager at Dakota Wealth](https://www.financedigest.com/analysis-credit-suisse-collapse-threatens-switzerlands-wealth-management-crown.html "Analysis-Credit Suisse collapse threatens Switzerland’s wealth management crown") in Fairfield, Connecticut, that owns a limited number of Tesla shares in accounts he manages, wondered whether Musk would simply install someone else to lead Twitter. “It seems like that would be the most logical thing,” he said. “It seems like he has his hands full with Tesla and SpaceX.” Gerber said perhaps Musk needs a strong No. 2 [executive like he has at SpaceX with President](https://www.financedigest.com/investment-firm-fort-lp-appoints-veteran-asset-management-executive-stuart-bohart-as-president.html "Investment Firm Fort LP Appoints Veteran Asset Management Executive Stuart Bohart as President") Gwynne Shotwell. Ian Beavis, chief strategy officer at auto consultancy AMCI, worries [Musk’s purchase of Twitter](https://www.financedigest.com/elon-musk-plans-to-cut-half-of-twitter-jobs-bloomberg-news.html "Elon Musk plans to cut half of Twitter jobs – Bloomberg News"), with its controversies around political and social issues, could even damage the Tesla brand. Some investors remain concerned about plans by Musk, who is worth $268 billion according to Forbes, to [finance the Twitter deal](https://www.financedigest.com/citi-halted-financing-for-trafiguras-nickel-deals-in-october-bloomberg.html "Citi halted financing for Trafigura’s nickel deals in October – Bloomberg"). Twitter said Musk secured $25.5 billion of debt and margin [loan](https://www.financedigest.com/trafigura-enters-3-billion-loan-to-supply-germanys-sefe-with-gas.html "Trafigura enters billion loan to supply Germany’s Sefe with gas") financing and is providing a $21 billion equity commitment. It is unclear whether Musk will [sell Tesla shares to help fund](https://www.financedigest.com/intercos-fund-shareholders-l-catterton-otpp-sell-6-stake-at-7-discount.html "Intercos fund shareholders L Catterton, OTPP sell 6% stake at 7% discount") the deal. [Musk holds 172.6 million shares in Tesla](https://www.financedigest.com/musk-says-tesla-price-cuts-triggered-demand-2023-sales-could-hit-2-million-vehicles.html "Musk says Tesla price cuts triggered demand, 2023 sales could hit 2 million vehicles") and he has already borrowed against about half of his stock, according to Tesla filings. If he puts up more shares as collateral to secure margin loans of $12.5 [billion](https://www.financedigest.com/abb-to-launch-1-billion-share-buyback-on-april-3.html "ABB to launch billion share buyback on April 3") he may be left with roughly 30 million unpledged shares, according to a Reuters calculation. (Reporting by Hyunjoo Jin in [San Francisco; additional reporting by Lewis Krauskopf and David Randall in New York, and Victoria Waldersee in Berlin, editing by Ben Klayman and Bernard Orr)](https://www.financedigest.com/paul-jasper-joins-rimon-laws-san-francisco-office-as-partner.html "Paul Jasper joins Rimon Law’s San Francisco Office as Partner") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---