Is Elon having buyer’s remorse or is he just looking for a better deal? Is the $1B breakup fine looking more appealing to him now? What’s the next best move for Twitter Inc (NYSE:TWTR)? And what does this mean for Tesla Inc (NASDAQ:TSLA)?

“I largely agree with the idea Elon is looking for an excuse to walk away or negotiate a better price. I’ve said from the beginning I didn’t think Elon was serious about buying Twitter. He had his bluff called and now he’s having buyer’s remorse. On top of that, I think the expediency with which Twitter accepted his price, especially given their concerns regarding how he might run the company, tell you Elon was probably overpaying. 

Although he’s said he’s still committed to buying Twitter, I think the $1B breakup fine is looking more and more appealing to Elon. I don’t think finding investors is the problem. I just think he’s a bit of a petulant child who ran his mouth one time too many. While $1B might not mean all that much to him in the scheme of things, I’m sure when he enters “1” and an awful lot of zeros into PayPal, Venmo, Zelle, or whatever app he uses to pay people, it’s gonna sting a bit.

As for Twitter, I think this probably puts the stock back in play. Whether that means looking for a new suitor or coming up with a plan to avoid being bought, I’m not sure. But with the stock now trading at $38, I can’t imagine the $54.20 price has any chance. In fact, the expected move for June is about +/- $6.50 and if you go out to September, it’s +/- $8. So that alone tells you the market is not anticipating anything near that $54.20 price”

What does this Mess mean for Tesla?

“I think for Tesla, the risk has always been that Twitter will either serve as a distraction for Elon or a tool by which he could potentially be manipulated. 

For example, if China doesn’t like the things being said about them on Twitter, it’s not difficult to foresee them pressuring Elon to tamp down the ability of those comments to be seen if he wants to sell Teslas in China.

It’s looking less and less likely Elon has intentions of closing the Twitter deal. His comments alone give a strong indication he’s having buyer’s remorse and might be looking for an out.

If you’re a Tesla shareholder, that may be a relief. The risk of any conflict of interest is looking less and less likely which may explain the risk in Tesla’s stock price today.”

Original Article: https://www.fxstreet.com/news/twitter-vs-elon-what-does-this-all-mean-for-tesla-202205190522