Tag Archives: Twitter (delisted)

Elon Musk tries to explain why Tesla shares are tanking

Shares in electric vehicle maker Tesla sank to a new 52-week low on Tuesday, closing around $138 per share, or 8% lower for the day in an otherwise mixed day for stocks.

CEO Elon Musk tried to blame the sinking price partly on macroeconomic factors.

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Long-time Tesla bull Ross Gerber wrote in a tweet, “Tesla stock price now reflects the value of having no CEO. Great job tesla BOD – Time for a shake up. $tsla.” Gerber has launched an informal campaign to have fellow shareholders vote to appoint him to Tesla’s board of directors.

Musk replied, in a tweet, “As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are not guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop.”

Elon Musk speaks during a press conference at SpaceX’s Starbase facility near Boca Chica Village in South Texas on February 10, 2022.

Jim Watson | AFP | Getty Images

But Tesla’s stock has dropped more than other larger automakers since Musk announced his plans to buy Twitter in Apr. 2022. Since that date, Tesla shares are down 59%, versus 26% for Ford and 12% for GM. The S&P 500 is down 14%.

The Tesla chief has a lot of distractions, as Gerber notes: Musk has been stirring controversy as the new owner and CEO of Twitter, the social media giant which he acquired in a leveraged buyout in late October, and is also the CEO of a major defense contractor, SpaceX.

Musk sold billions of dollars of his Tesla holdings to finance the Twitter deal, including a $3.6 billion sale earlier this month.

He told Twitter employees he sold Tesla shares to “save” their business while proceeding to cut more than half of staff at the company and rolling out a host of policy changes, some of which he later reverses.

While Musk has been focused on his new role as “Chief Twit” since late October, Tesla has been offering discounts and incentives to sell cars in China, where it operates a major factory in Shanghai; fighting to make its new factories in Austin, Texas, and Brandenburg, Germany, efficient; and facing persistent supply chain challenges endemic to the auto industry, along with soaring energy prices in Europe which may reduce the appeal of a battery electric vehicle for many drivers.

Those, among other challenges, led Mizuho Securities and Evercore ISI to reduce their Tesla price targets on Tuesday.

Mizuho Securities analysts wrote in a note, that “near-term, we see potential weakness in Tesla sales as macro headwinds and a weaker consumer could drive lower demand for higher-priced EVs.” The firm is still bullish Tesla long-term, citing the company’s new factories as a competitive advantage, and new electric vehicle tax credits on the horizon in the US which could “accelerate demand” domestically. In China, some EV credits are expiring as of the start of 2023. The firm has a price target of $285 and a buy rating on shares of Tesla.

A Vanderbilt University assistant professor, Joshua White, who formerly worked as an economist for the U.S. Securities and Exchange Commission, told CNBC, Only some of the drop in Tesla’s value can be blamed on interest rates. Twitter overhang is one important component. China is another huge component. We still don’t know if China will be open all the way, and we see there is supply and demand pressure here in light of the increase in covid cases, and disruptions.”

He also said Elon Musk may have lost shareholders’ trust when he said in April that he didn’t plan to sell more of his Tesla shares, but went ahead and sold billions of dollars’ more.

“He seems to sell equity in really large blocks, say ‘I’m done and I’m not selling anymore.’ But talk is cheap. He says that and then sells more shares. So the more you say that and investors think he’s probably not done? The less confident they will be that the price is going to bounce back.”



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5 things to know before the stock market opens Friday, December 16

Traders work on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 14, 2022. 

Andrew Kelly | Reuters

Here are the most important news items that investors need to start their trading day:

1. Desperately seeking Santa

Ho ho ho? More like, no no no. It’s been a terrible week for stocks, and hopes of a Santa Claus rally are fading. U.S. equities are on the verge of their second straight losing week. Markets fell steeply Thursday as investors digested Federal Reserve Chairman Jerome Powell’s hawkish remarks and outlook from the day before. Sluggish retail sales heading into the holidays didn’t help, either, even though they indicated a slowing economy, which is what the Fed wants as it tries to beat back inflation. Instead, it’s shaping up to be an environment where the Fed keeps rates higher for a longer period of time, regardless of what happens in the next few months. Read live markets updates here.

2. Twitter targets journalists

STR | Nurphoto | Getty Images

Twitter suspended the accounts of several journalists and commentators who report on the company and its owner, billionaire Tesla CEO Elon Musk. As of Thursday night, the social media platform had suspended the accounts of Ryan Mac of The New York Times, Donie O’Sullivan of CNN, Drew Harwell of The Washington Post, Matt Binder of Mashable, Micah Lee of The Intercept, Steve Herman of Voice of America, as well as independent figures Aaron Rupar, Keith Olbermann and Tony Webster. Musk, who has billed himself as a “free speech absolutist,” suggested on Twitter that the journalist suspensions were in the same vein of discipline against accounts that track flights, including one that followed the CEO’s private jet’s whereabouts.

3. U.S. squeezes Chinese chipmaker

Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. 

Florence Lo | Reuters

The Biden administration on Thursday unveiled restrictions against several, mostly Chinese entities, including a chipmaker, over national security concerns. The chip company, Yangtze Memory Technologies Corporation, or YMTC, was already on a U.S. trade blacklist. The action aims to hamper China’s ability to use “artificial intelligence, advanced computing, and other powerful, commercially available technologies for military modernization and human rights abuses,” according to a Commerce Department official. The move also comes as the administration attempts to beef up semiconductor manufacturing on U.S. soil.

4. Adobe delivers

Low-angle view of sign with logo on facade at office of computer software company Adobe in the South of Market (SoMA) neighborhood of San Francisco, California, June 10, 2019.

Smith Collection/gado | Archive Photos | Getty Images

Adobe posted quarterly earnings Thursday that topped analysts’ expectations, while the design software maker stuck with its forecast for the full fiscal year. The stock rose on the positive news, although it’s down more than 40% on the year, much steeper than the decline in the broad S&P 500 index. “We delivered record operating cash flows with a focus on profitability,” Adobe’s CEO, Shantanu Narayen, said on an earnings call. Yet he also warned that a slowing economy could hurt the company, and that Adobe would operate with caution.

5. Flipped off

A not-so-surprising casualty of the rapid cooling in the housing market is the home-flipping segment. Profit from flips, defined as when a house is bought and sold within a 12-month window, fell 18.4% in the third quarter from the second. That’s the biggest quarterly decline in over a decade, according to real estate data provider ATTOM. It’s a double whammy for house flippers: home prices are still high, but they’re quickly easing, while renovation costs have also soared. “With demand from buyers weakening, prices trending down over the past few months, and financing rates significantly higher than they were at the beginning of the year, flippers face a much more difficult environment today, and probably will in 2023 as well,” Rick Sharga, executive vice president of market intelligence at ATTOM, said in a release.

– CNBC’s Alex Harring, Kevin Breuninger, Jordan Novet and Diana Olick contributed to this report.

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Elon Musk sells another huge chunk of Tesla shares

Anadolu Agency | Anadolu Agency | Getty Images

Tesla CEO Elon Musk sold about 22 million more shares in his electric vehicle business, which were worth around $3.6 billion, according to a financial filing out Wednesday night. The transactions took place between Monday and Wednesday this week according to the filings with the Securities and Exchange Commission.

Earlier this year, Musk told his millions of followers on social media that he had “no further TSLA sales planned” after April 28.

According to financial research firm VerityData, Musk has sold 94,202,321 shares so far this year at an average price of $243.46 per share for pre-tax proceeds of approximately $22.93 billion.

Director of research for VerityData, Ben Silverman, wrote in an e-mail to CNBC on Wednesday, “Musk’s prior sales going back to November 2021 were expertly timed, so Tesla shareholders need to pay attention to Musk’s actions and not his words – or lack thereof when it comes to his recent selling.”

However, he continued to sell portions of his sizable holdings in Tesla after agreeing to buy Twitter in a deal worth around $44 billion. The acquisition closed in late October. Musk, who is also CEO of SpaceX, a major defense contractor, immediately appointed himself CEO of the social media company.

After Musk’s Twitter takeover, he told employees there that he sold Tesla shares to “save” their business.

Tesla shares have been declining this year, and sliding even further since he took on that new responsibility.

Shares of Tesla closed down 2.6% on Wednesday at $156.80, dropping the company’s market capitalization to $495 billion. Tesla shares were down 55% year-to-date as of Wednesday’s close.



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Cramer on hot industrial stocks, and how we’re playing the tech pivot

Jim Cramer at the NYSE, June 30, 2022.

Virginia Sherwood | CNBC

The market is so possessed by tech that it can’t see the forest through the industrials. If the discourse isn’t about the slowdown in the cloud, it’s about who is pulling out of the now-private Twitter, or how disappointing it is that co-CEO Bret Taylor left Salesforce (CRM). Meta Platforms‘ (META) Mark Zuckerberg could sneeze and Amazon (AMZN) CEO) Andy Jassy cough and it’s a bigger deal than United Airlines‘ (UAL) order for 100 Dreamliners from Boeing (BA).

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Elon Musk says Twitter to launch ‘Verified’ service next week

Elon Musk Twitter account displayed on a phone screen and Twitter logo displayed on a screen in the background are seen in this illustration photo taken in Krakow, Poland on November 22, 2022.

Jakub Porzycki | Nurphoto | Getty Images

Elon Musk said in a tweet Friday that Twitter would launch its delayed “Verified” service next week with different colored checks depending on the type of account.

The Twitter CEO said there would be a “gold check” for companies, a grey colored one for government accounts and the existing blue one for individuals, whether they are celebrities or not.

All verified accounts will be “manually authenticated” before the check is activated, Musk said.

The billionaire called the move “Painful, but necessary”

Musk’s comments come after he was forced to pause the $8 per month Twitter Blue service, which allowed anyone to pay the subscription for the blue verification tick, after users abused the system by impersonating brands and famous people.

The CEO said Monday that Twitter would delay the relaunch of its $8 per month Blue Verified service. At the time, Musk said Twitter will “probably use [a] different color check for organizations than individuals.”

Now he has given details on what that could look like.

Musk had earlier said he planned to relaunch Twitter Blue on Nov. 29. Musk’s latest timeline puts the relaunch on Dec. 2.

The subscription service is Musk’s attempt to find a new revenue stream at Twitter as part of the billionaire’s controversial shakeup at the social media firm.

Musk has fired thousands of employees at Twitter and asked the remaining workers to commit to working “long hours at high intensity” or leave.

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Elon Musk sets more in-office requirements at Twitter

SpaceX owner and Tesla CEO Elon Musk speaks during a conversation with legendary game designer Todd Howard (not pictured) at the E3 gaming convention in Los Angeles, California, June 13, 2019.

Mike Blake | Reuters

A pair of new emails from Elon Musk to Twitter employees says managers must meet in-person with employees — even exceptional ones — at least monthly, and says managers can be terminated for allowing employees to work remotely if they are not “exceptional.”

In a pair of emails sent within the same hour on the afternoon of Nov. 17, Elon Musk said, “Regarding remote work, all that is required for approval is that your manager takes responsibility for ensuring that you are making an excellent contribution. It is also expected that you have in-person meetings with your colleagues on a reasonable cadence, ideally weekly, but not less than once per month.”

Musk went on to threaten managers who don’t uphold his guidelines.

“At the risk of stating the obvious, any manager who falsely claims that someone reporting to them is doing excellent work or that a given role is essential, whether remote or not, will be exited from the company.”

In the email, Musk does not give any guidelines on what constitutes “excellent work.”

The emails come after Musk closed a $44 billion acquisition of Twitter at the end of October, and quickly moved to cut half of the company’s full-time workforce, amounting to roughly 3,700 jobs, and a large swathe of contractors.

One of Musk’s first moves was to reverse the company’s previous “work from home forever” policy, which had been enacted by a personal friend and collaborator of Musk, former Twitter CEO Jack Dorsey.

On Thursday, Musk wrote in a pair of team emails: “Going forward, to build a breakthrough Twitter 2.0 and succeed in an increasingly competitive world, we will need to be extremely hardcore. This will mean working long hours at high intensity. Only exceptional performance will constitute a passing grade.”

He also said he would be fine with people who are “performing at an exceptional level” staying remote if they couldn’t make it in but that he preferred in-office collaboration. But at the time, employees told CNBC they had not gotten formal guidance from HR on remote work.

Here are the emails, transcribed by CNBC:

From: Elon Musk

To: Team at Twitter

Date: Nov. 17, 2022 [Time Stamp removed]

Subj. re: Fork in the Road

Regarding remote work, all that is required for approval is
that your manager takes responsibility for ensuring that
you are making an excellent contribution.

It is also expected that you have in-person meetings with
your colleagues on a reasonable cadence, ideally weekly,
but not less than once per month.

And:

From: Elon Musk

To: Team at Twitter

Date: Nov. 17, 2022 [Time Stamp removed]

Subj. re: Fork in the Road

At risk of stating the obvious, any manager who falsely
claims that someone reporting to them is doing excellent
work or that a given role is essential, whether remote or
not, will be exited from the company.

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Four-day workweek is new standard for 40% of companies, EY study finds

A man walks on Wall St. during the morning commute, as the city deals with record temperatures and the excessive heat, in New York, July 20, 2022.

Brendan McDermid | Reuters

A cooling economy, rising mortgage rates and mass layoffs have done little to dampen executive demand for expanded office presence and increased flexibility for office workers, a new report from Ernst and Young (EY) finds. 

The consulting firm released its second annual EY Future Workplace Index on Wednesday, which showed a growing appetite for hybrid work, and an increase in both the utilization of flexible working options and the presence of a four-day workweek.

40% of companies surveyed either have implemented or have begun to implement a four-day workweek, EY said in a press release, an approach that has gained popularity abroad but has seen little adoption in the U.S. until recently.

Hybrid work showed a marked uptick from 2021, the survey showed, with 70% of employers surveyed adopting a hybrid approach which has employees working from home two to three days a week.

The four-day workweek and the growth of a hybrid workforce are both parts of what EY claims is a shifting landscape in real estate management for corporate leaders. “The economic downturn will force leaders to make important decisions regarding their real estate portfolios — from investments, to space optimization, to workforce models,” EY partner Mark Grinis said in a press release.

According to the press release, executives continue to invest in improving employee quality of life. 46% of surveyed employers plan to introduce in-office baristas. A third of surveyed executives plan to implement or extend their childcare options for employees. These changes come after the Covid-19 pandemic bruised employees and drove an uptick in resignations across sectors. The EY survey found that surveyed companies have begun to invest in in-office amenities to boost return-to-office rates and employee retention.

The EY report comes amidst mass layoffs in all industries, but especially in tech, where skilled employees enjoyed expansive perks and office amenities. Meta, Amazon, and Twitter have all announced reducing headcount by the thousands. At Google parent company Alphabet, even with a hiring slowdown in place, an activist investor is demanding CEO Sundar Pichai cut the search giant’s headcount and employee expenses.

According to the EY survey, however, only a third of surveyed executives plan to reduce investment in commercial real estate. Over half of those surveyed plan to improve or expand their existing portfolios. 

Elon Musk, on the other hand, shows no sign of following the executives EY surveyed. Decrying Twitter’s catering expense — which he claimed was $13 million annually in San Francisco alone — the new Twitter chief has yanked free lunches and told employees that they must return to the office.



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A brain expert shares his 7 ‘hard rules’ for boosting memory and fighting off dementia

The average human brain shrinks by approximately 5% per decade after the age of 40. This can have a major impact on memory and focus.

What’s more, brain disorders are on the rise. In 2020, 54 million people worldwide had Alzheimer’s disease or other dementias, and that number is expected to grow.

But serious mental decline doesn’t have to be an inevitable part of aging. In fact, certain lifestyle factors have a greater impact than your genes do on whether you’ll develop memory-related diseases.

As a neuroscience researcher, here are seven hard rules I live by to keep my brain sharp and fight off dementia.

1. Keep blood pressure and cholesterol levels in check

Your heart beats roughly 115,000 times a day, and with every beat, it sends about 20% of the oxygen in your body to your brain.

High blood pressure can weaken your heart muscle, and is one of the leading causes of strokes. Ideally, your blood pressure should be no higher than 120/80.

Cholesterol is critical to your brain and nervous system health, too. The American Heart Association recommends getting your cholesterol levels measured every four to six years.

2. Manage sugar levels

Blood sugar is the primary fuel of the brain. Not enough of it, and you have no energy; too much, and you can destroy blood vessels and tissue, leading to premature aging and cardiovascular disease.

Keep in mind that sugar isn’t enemy, excess sugar is. It’s easy for grams of sugar to add up, even if you think you’re being careful — and usually, sugar will sneak in through packaged foods.

Where is the sugar hidden? Look for these in the ingredients list:

  • Dextrose
  • Fructose
  • Galactose
  • Glucose
  • Lactose
  • Maltose
  • Sucrose

And be wary of any product that includes syrup, such as agave nectar syrup or high-fructose corn syrup.

3. Get quality sleep

Studies show that people with untreated sleep apnea raise their risk of memory loss by an average of 10 years before the general population.

For most people, a healthy brain needs somewhere between seven and nine hours of sleep a night.

My tips for memory-boosting, immune-enhancing sleep:

  • Keep a consistent bedtime and wake-up schedule.
  • Turn off devices one hour before bedtime.
  • Do something relaxing before bedtime, like listening to soft music or doing mindful breathing exercises.
  • Go outside and get in natural sunlight as soon as you can after waking up.

4. Eat a nutritious diet

One way I keep things simple is to have most, if not all, of these items in my grocery cart:

  • Fatty fish like salmon
  • Avocados
  • Nuts
  • Blueberries
  • Cruciferous veggies like arugula, broccoli, Brussels sprouts and collard greens

When food shopping, I ask myself three questions to help determine whether something is good for my brain:

1. Will it spoil? In many cases, perishable is a good thing. The additives and preservatives that keep food from spoiling wreak havoc on your gut bacteria.

2. Are there tons of ingredients in that packaged food? And for that matter, can you pronounce the ingredients? Or does it look like the makings of a chemical experiment? Also avoid anything where sugar is one of the first few ingredients.

3. Do you see a rainbow on your plate? The chemicals that give fruits and vegetables their vibrant colors help boost brain health.

5. Don’t smoke (and avoid secondhand and thirdhand smoke)

Smokers have a 30% higher risk of developing dementia than non-smokers. They also put those around them at risk: Secondhand smoke contains 7,000 chemicals — and at least 70 of them can cause cancer.

Then there’s thirdhand smoke, which is not actually smoke. It’s the residue of cigarette smoke that creates the telltale smell on clothing or in a room. That residue alone can emit chemicals that are toxic to the brain.

6. Make social connections

In a recent study, people over the age of 55 who regularly participated in dinner parties or other social events had a lower risk of losing their memory. But it wasn’t because of what they ate, it was the effect of the repeated social connection.

To lessen isolation and loneliness, you can also boost brain chemicals like serotonin and endorphins by performing small acts of kindness:

  • Wish others well or check in with somebody.
  • Give a compliment without expecting anything in return.
  • Make a phone call to somebody you don’t usually reach out to.

7. Continuously learn new skills

Maintaining a strong memory is not all about brain games like Sudoku, Wordle and crossword puzzles.

Learning skills and acquiring information are much more effective ways to make new connections in the brain. The more connections you make, the more likely you are to retain and even enhance your memory.

When you think about learning something new, approach it the way you would with fitness training. You want to work out different muscles on different days. The same goes for the brain.

Over the course of this week, try cross-training your brain by mixing mental activities (learning a new language or reading a book) and physical learning activities (playing tennis or soccer) .

Marc Milstein, PhD, is a brain health expert and author of “The Age-Proof Brain: New Strategies to Improve Memory, Protect Immunity, and Fight Off Dementia.” He earned both his PhD in Biological Chemistry and his Bachelor of Science in Molecular, Cellular, and Developmental Biology from UCLA, and has conducted research on genetics, cancer biology and neuroscience. Follow him on Twitter and Instagram.

Don’t miss:

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Twitter rolls out changes for some users ahead of new Blue launch

Elon Musk’s Twitter account displayed on a phone screen and Twitter logo displayed on a laptop screen are seen in this illustration photo taken in Krakow, Poland on November 1, 2022.

Jakub Porzycki | Nurphoto | Getty Images

Twitter began rolling out changes to its platform for some users on Saturday in preparation for the launch of its revamped subscription service Twitter Blue.

Updates outlined in the App Store confirmed that users will be able to purchase Twitter Blue and receive a blue checkmark for $7.99 per month. The updates are listed as available for users in the U.S., Canada, Australia, the UK and New Zealand, according to the description in the Apple online store.

Esther Crawford, director of product management at the social media company, said in a series of tweets that the new version of the subscription service isn’t available for everyone yet, but a “small early group” may see updates to the platform.

“The new Blue isn’t live yet — the sprint to our launch continues but some folks may see us making updates because we are testing and pushing changes in real-time,” she wrote. “The Twitter team is legendary.  New Blue… coming soon!”

Elon Musk, who became the new owner of Twitter on Oct. 28, has laid out a series of ideas for a new user verification process for Twitter, which he acquired for $44 billion.

In an earlier thread of tweets, Musk criticized the current system, which gives a blue checkmark, or verification, to notable users like politicians, members of the press, executives and organizations. Historically, the checkmark has let readers know that the account is legitimate. Other social networks, like Meta’s Facebook and Instagram, have similar verification systems.

Musk said he plans to give “power to the people” by offering verification to anyone on the platform through Twitter Blue for $8 a month. He said subscribers will get priority in mentions, replies and search, receive half as many ads and will be able to tweet long videos and audio.

Those changes were confirmed Saturday in the updated App Store listing. The updated version of the app also promised Blue members “a better reading experience” and “early access to select new features.”

Musk said in a tweet Saturday that Twitter Blue will roll out worldwide once it is confirmed to be working in the initial set of countries.

The changes follow an earlier report from The Verge that said the Musk was considering charging as much as $19.99 per month for the subscription. Twitter employees working on the project were reportedly told they had until Nov. 7 to launch the feature, or risk being fired, according to the report.

Nov. 8 is the date of midterm elections in the U.S.



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