As Tesla Shares Drop Below $200, Analyst Suggests A Fix — It Has Nothing To Do With The EV Maker

Elon Musk’s newest business Twitter is weighing down on the shares of his flagship Tesla Inc. TSLA venture, and Future Funds’ Gary Black shared his thoughts on fixing the social media platform.

What Happened: Black commented that the Twitter news is getting worse, referring to the fact that advertisers are pulling back from the platform. Advertising revenue makes up more than 90% of Twitter’s topline.

See Also: Twitter Employee Sleeps On Floor As Exacting Elon Musk Pushes Hard To Meet Deadlines

As advertisers leave, Twitter might be required to raise more funding, Black said. The social media platform may need finances to run its operations and also pay off the debt on its balance sheet, which got bloated with the loan Musk took to fund the purchase.

Musk’s top engineers shouldn’t be running Twitter, Black said, adding that the billionaire should bring in the right skills to fix it. Black is of the view that the Tesla CEO should have to bring in 50 brand managers or advertising executives.

“Elon’s threats aren’t helping,” he added.

Why It’s Important: Tesla shares have been under pressure ever since they hit an all-time intraday high of $414.50 on Nov. 4, 2021. A 3-for-1 stock split implemented in late August has done little to revive the sagging stock.

The uncertainty in the run-up to the consummation of the Twitter deal and following the deal closure has made matters worse for the EV maker’s stock.

Price Action: On Monday, Tesla shares closed below the psychological mark of $200 for the first time since early June 2021.

Tesla settled Monday’s session 5.01% lower at $197.08, according to Benzinga Pro data.

Read Next: How Did Elon Musk Make His Money