Tesla Shares Fall 2.75 Percent After Musk’s Twitter Abuse

Tesla Inc shares fell 2.75 percent on Monday following a controversial Twitter exchange between CEO Elon Musk and British cave diver Vernon Unsworth. Musk’s comments have raised concerns among analysts and investors about his focus on Tesla’s core business of producing electric cars.

The feud began after Musk’s offer of a mini-submarine to assist in the rescue of 12 Thai children trapped in a flooded cave was rejected by rescue teams. Unsworth, who played a key role in the rescue operation, dismissed Musk’s submarine as impractical, prompting Musk to retaliate on Twitter by calling Unsworth a “pedo guy.”

The backlash from Musk’s comments resulted in a $2 billion drop in Tesla’s market value, with some investors expressing their disappointment in Musk’s behavior. James Anderson, a partner at Tesla’s fourth-largest shareholder, emphasized the importance of maintaining focus on the company’s core business.

Despite the controversy, Tesla shares closed at $310.10 before rebounding in after-hours trading. Musk’s Twitter outbursts have become a recurring issue for the company, with the CEO using the platform to criticize media reports and engage in public disputes.

Unsworth, who is considering legal action against Musk, is set to return to Britain on July 19. The ongoing fallout from the Twitter feud highlights the challenges faced by Tesla as it strives to meet production targets for its Model 3 sedan.

As the situation continues to unfold, investors and analysts will be closely monitoring Musk’s public statements and their impact on Tesla’s performance in the electric car market.