Raise it, put it down and then suspend it, it’s the turn of many organizations in the US to launch a campaign to block Elon Musk from buying Twitter
Is the Twitter acquisition just a ‘name polishing’ trick?
Twitter announced that the sale of this social network to billionaire Musk is getting closer to the signing stage when the deadline for verification by the US antitrust agency has passed. The boss of electric car maker Tesla has reached a preliminary deal to buy Twitter for $ 44 billion. The deal needs to be reviewed by a number of regulators and approved by Twitter shareholders.
However, a coalition of nonprofits has launched a campaign to ‘block’ the deal. The parties to the campaign argue that billionaire Musk bought Twitter just to “polish his name”.
Letting the deal go on would be an opportunity for extremism to run rampant, with harmful, hateful and offensive posts expected to increase on Twitter.
The campaign was launched to pressure the US Securities and Exchange Commission (SEC) and other agencies to study this deal more closely and convince Twitter shareholders to oppose billionaire Musk’s purchase of the technology company. based in San Francisco.
Recently, after being accused of “market manipulation” by Twitter shareholders, billionaire Elon Musk was also said to be in the sights of the US securities “sheriff”, the SEC.
On May 27, the SEC published the full text of a letter to the South African-American billionaire, asking him to explain why he had not announced information about increasing his stake in Twitter within 10 days. as specified, especially the plan to buy this company.
Notable in that is the letter sent on April 4, the day that Elon Musk announced that he held more than 9% of Twitter shares. In the letter, the SEC reminded why Mr. Musk waited until April 4 to release the above information, while since March 14, he has held more than 5%.
The SEC also questioned the boss of Space X and Tesla about choosing the 13G schedule, which is only available to “passive” investors. In the letter, the SEC stated that Musk needed to respond and clarify about recent statements on the social network Twitter, including questions about this social network.
Billionaire Musk became a major shareholder of Twitter after buying 73.5 million shares of Twitter in early April. Less than two weeks later, the South African-born billionaire began asking to buy this social network and reached a $44 billion deal for the deal.
However, since then, Elon Musk is said to have sent unclear signals about the implementation of this agreement. Recently, US market regulators have paid special attention to Mr. Musk’s posts on Twitter. Currently, this billionaire CEO of electric car company Tesla is also being sued for allegedly undermining Twitter’s stock price to find a way to withdraw from the acquisition of this social network, or negotiate to buy it at a lower price.
New warning from Elon Musk could be a ‘canary in a coal mine’ moment for the auto industry
According to information from Reuters, Elon Musk said Tesla will cut about 10% of its workforce in an email to the senior position of the electric car company.
In another email to employees on June 3, Elon Musk announced that Tesla will reduce the number of employees being paid by 10% because the company has become “redundant in many areas”. However, “the number of hourly employees will increase”.
“Please note, this does not apply to anyone who is actually building cars, batteries, or solar installations,” Elon Musk wrote in the email.
Nearly 100,000 people work at Tesla and its subsidiaries as of the end of 2021, according to Securities and Exchange Commission (SEC) filings. Tesla does not clearly divide the number of salaried and hourly workers.
Elon Musk’s message above is the first public and loud warning in the auto industry’s unified stance that basic demand for cars and trucks remains strong despite the global pandemic that has lasted 2 years. five.
In recent weeks, Elon Musk has warned of the risk of a recession, but his email ordering Tesla to freeze global hiring and cut staff was the most high-profile, direct message of its kind from the head. one car maker, while others described demand as still “heavy”.
Adam Jonas, an analyst at investment bank Morgan Stanley, said in a note: “Elon Musk has great insight into the global economy. We believe a message from him will have credibility. high confidence”.
“Tesla is not a little canary in a coal mine. It’s like a whale in a lithium mine,” Adam Jonas commented in a research note, referring to lithium, the metal used in batteries. Electric Car.
Tesla shares fell 9% on June 3 after Reuters reported on Elon Musk’s warning.
Two years ago, the auto sector was hit by the COVID-19 pandemic, which forced factories to close. That outage caused semiconductor chip shortages that made car production even more difficult.
Now, supply chain troubles, exacerbated by Russia’s attack on Ukraine, have dragged down sales. According to analysis firm Wards Intelligence, US new car sales in May 2022 were 12.68 million units, at a weak annual average. That’s a far cry from the glory days of 17 million cars in the same period a year before the COVID-19 pandemic.
However, those issues mainly affect supply, while inflation is a threat to demand. Jeff Schuster, President of Global Automotive Forecasting at LMC Automotive, said of Elon Musk: “Risks recession is high, so what he’s saying is definitely not extreme.”
References: CNBC, Reuters
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