The Crypto market usually also has a rough time in September. Bitcoin lost 12.7% in September 2021, 17.4% in 2020, 17.5% in 2018, 21.4% in 2017 and 45.4% in 2015. The main cryptocurrency increased by 13.3% and 3.95% in 2016 and 2019, respectively.
What Happened to Elon Musk’s Deals?
Information is not investment advice
Elon Musk is famous for his statements and tweets that spread around news headlines in a moment and provoke a lot of buzzes. This time, he claimed that he has “a super bad feeling about the global economy”. How can it shake the market? What does it mean for Tesla? Let’s discuss in this article.
Today’s Tesla situation
In a recent email to Tesla employees, Musk said that the company won’t only suspend recruitment but also reduce 10% of employees. However, according to the company’s employees, job cuts won’t affect those who produce cars or batteries. About 39% of Tesla's roughly 100,000 workers were "production line employees," according to the company's annual report.
The automaker's shares fell more than 9% on Friday after news of job cuts appeared. And Musk’s statement about “bad feeling” in the global economy didn’t help it.
Recent lockdowns in Shanghai hamper production at the company's local Gigafactory. In addition, commissioning costs and expenses associated with commissioning factories in Berlin and Austin have risen. All these factors are forcing investors to "discount car gross margins," which, according to analytics, probably peaked in the first quarter of the year.
While demand for Tesla cars still exceeds their production capacity, that doesn't necessarily preclude the need to control costs. So, does a challenging macroeconomic landscape in which the supply chain remains under pressure, inflation impacts demand, geopolitical risks rise, and capital markets remain depressed, call for some reduction in EV expectations?
Tesla’s stock price has been fluctuating between $618 support and $800 resistance since May 11. Now it’s $706.
Moreover, Elon's deal with Twitter hasn’t been completed due to disputes over bots. Last month, Musk said he was delaying the deal until the social media giant could prove that bots make up less than 5% of its users, the company said in public documents. Musk has calculated that fake accounts make up at least 20% of all users.
However, Twitter said it did share information with Musk about how it counts the number of spam accounts on the service. Moreover, executives told employees that Musk can't just delay the deal as the two sides had signed a merger agreement. The company confirmed on Monday that it would hold Musk accountable for the terms of his proposed $44 billion takeovers, suggesting even the company believes he may be trying to derail the deal. It's possible that Twitter could try to sue Musk to complete the deal if he tries to back out of the acquisition.
Shares of Twitter fell 1.49% on Monday, signaling increased skepticism that Musk will complete his offering at $54.20 a share. Shares have barely — and only briefly — topped $50 since Musk unveiled his buyback plan on April 14. The deal went through at breakneck speed partly because Musk turned down the opportunity to look at Twitter's finances beyond what was publicly available.
Musk probably has a different experience with bots on the platform than most. With 96 million followers, Elon probably attracts more bots than most users.
Now the price is consolidating between two important levels - $42 resistance and $35 support.
Due to all this news, we can just hope that Elon’s “bad feeling” is wrong and soon he’ll own one more company! Many traders support Musk and his companies and believe in the potential profit it can bring.
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