Investors expect Elon Musk to sell more Tesla shares by the end of 2022: MLIV Pulse

About 75% of the 1,562 respondents, including portfolio managers and retail traders, say Musk will not own Twitter Inc. A third of respondents estimate he would settle with a social-media company for more than $1 billion instead of seeing through its $44 billion acquisition at $54.20 per share, while 27% think a judge will give them $1. Billion will order the breakup fee to be paid.

Musk will likely sell the shares, regardless of what happens to him twitter dealMike Lucas, CEO of Trumark Investments, echoed the sentiment of 68% of those surveyed. “But if investors read too much into it, they are not seeing the forest through the trees.”

It could signal further pain for Tesla stock, which is down about 16% this year, compared with a 13.3% drop in the S&P 500. The Austin-based company has been cashed in by supply-chain constraints, COVID-related lockdowns in China, and confusion surrounding Musk’s Twitter following.

Musk, 51, is the world’s richest man, with $260 billion in wealth derived largely from his stake in Tesla. But he’s been giving up shares of late: He did a Twitter survey about selling 10% of his position in November, then went on to sell more than 15 million shares over the next few months.

Musk landed around 9.4 million tesla stock Following its deal to buy Twitter in April, $25 billion worth of stock was sold over a six-month period. He is now attempting to back out of the settlement, which will be the subject of a speedy trial in October in Delaware Chancery Court.

resolution relief

Whatever the outcome, investors expect Tesla shareholders to welcome an end to the matter.

“Tesla could rally if their stock sells out with a definitive agreement that puts the Twitter mess behind them,” said Steve Sosnick, chief strategist at Interactive Brokers. “A fixed end to Twitter would remove a distraction and theoretically allow Musk to focus. More on Tesla.”

Still, survey respondents are less confident of Tesla’s upside relative to the four other megacaps in the S&P 500. About a quarter said Microsoft Corp offered the most potential, roughly the same share as Amazon.com Inc. Alphabet Inc. got 21%. Voted while Apple Inc. got 18%. Tesla came in last, with 12.5%.

The threat of competition for electric vehicles is huge, with most global automakers working on their own EVs. The macro backdrop is also challenging, with the US economy shrinking for two consecutive quarters.

Those broad concerns were on the minds of investors who responded to the survey, resulting in a cautionary note. They expect value stocks to outperform growth stocks over the next six months, although the largest technology companies are more than likely not to post at least modest gains from here until the end of the year.

“Any tech monopoly is going to fly to safety,” Alex Moezd, chief executive officer of Applico, said in a Bloomberg TV interview. “Investors want to put their money in low-risk locations that can still grow.”

related to Elon Musk, his time in the Bloomberg Billionaires Index may be short-lived. 1 spot last year following Tesla’s massive rally, more than 50% of respondents say it will lose that position by the end of 2023. By comparison, about 33% say they will remain in place until 2025 or later.

This story has been published without modification in text from a wire agency feed. Only the title has been changed.

first article