--- title: "Elon Musk Has a Big Problem on His Hands" description: "Tesla CEO Elon Musk's disastrous attempt to back out of his bid to buy Twitter is backfiring spectacularly — and Tesla could be along for the ride." date: "2022-10-06" modified: "2022-10-06" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/elon-musk-big-problem-tesla" categories: - "Elon Musk" - "Future Society" - "The Industrialists" tags: - "elon musk" - "tesla" - "twitter" --- # Elon Musk Has a Big Problem on His Hands ![Tesla CEO Elon Musk's disastrous attempt to back out of his bid to buy Twitter is backfiring spectacularly — and Tesla could be along for the ride.]() *\Image: Christian Marquardt - Pool/Getty Images\* Tesla CEO Elon Musk's disastrous attempt to back out of an ill-advised bid to buy Twitter for $44 billion is backfiring spectacularly — and his car company Tesla could be along for the ride. According to a [recent *New York Times* report](), Musk went as far as to beg for a 30 percent discount during the negotiation, a proposition Twitter's board scoffed at. Long story short, now Musk has finally backed down, agreeing to buy the social media company at his original offer of $54.20 a share, a massive sum that could force the billionaire to dig deep into his pockets and sell even more Tesla shares. Even for the richest man in the world, $44 billion is a lot of dough. In August, Musk already [sold off $7 billion]() of Tesla shares to pay for Twitter. After all, the deal hinged on Musk's ability to secure funding. At the time he [hinted at the possibility]() of having to sell even more Tesla stock "in the (hopefully unlikely) event that Twitter forces this deal to close \*and\* some equity partners don’t come through." But that's exactly what happened, with [two funders bailing already](). As of right now, it's looking like Musk will soon be the proud new owner of a website that has historically struggled significantly to make ends meet, and he may well have to sell more Tesla stock to make it happen. That kind of uncertainty has Tesla investors worried, [*The Street* reports](). Besides, Musk is already a very busy man, and adding Twitter to the pile will inevitably mean he'll [have even less time]() to dedicate to the electric car company. "The broader worries are Musk is spread too thin at such a key time for Tesla," Wedbush Securities analyst Dan Ives [told ]()*[Yahoo Finance]().* "He is juggling a lot of balls at the same time and that makes Tesla investors on edge with Twitter the new kid on the block to the Musk ecosystem." The timing of Musk's disastrous shopping spree couldn't be worse. The company has already been [put through the ringer this year](), and the latest news is adding to fuel to the fire. Most recently, the company's stock prices plunged [more than 20 percent in less than 20 days](), in a clear sign investors are less than impressed with Musk's antics. Broader market conditions haven't exactly helped, either, with experts warning of a possible recession. The end of this epic saga may finally be in sight — but we've got more questions than ever. Will Musk be able to turn the ship around and transform Twitter into a profitable business? Will those efforts end up interfering with his involvement in Tesla? Musk has long been known for making waves, for better or for worse — and that kind of uncertainty is the last thing you need during an ongoing economic downturn of epic proportions. **READ MORE:** [What Elon Musk's Twitter ambitions could mean for Tesla]() \[*Yahoo Finance*\] ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()