Elon Musk's $97B OpenAI Bid A 'Distraction' From Tesla's Challenges, Says Analyst As TSLA Stock Set For Sixth Consecutive Drop

What Happened: Musk’s bid for OpenAI is a discount to the AI company’s Oct. 2024 capital raise and unlikely to lead to any discussion, the analysts said, as reported by Markets Insider.

Earlier this week, it was reported that Musk, along with a group of investors, offered to buy the nonprofit that controls OpenAI for $97.4 billion. OpenAI CEO Sam Altman, however, refused the offer and wrote in a post on X, “no thank you but we will buy twitter for $9.74 billion if you want.” OpenAI was valued at $157 billion in its last funding round.

The firm, however, maintains a “perform” rating on Tesla shares.

According to The Future Fund Managing Director Gary Black, investor worries about Musk-headed Department of Government Efficiency, Open AI, first quarter volumes, and commoditization of autonomy all aided the drop in share value over the past few days.

Black maintains a $380 price target on Tesla. Shares of the EV giant closed down 6.3% at $328.5 on Tuesday.

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