What Happened: Gary Black, managing partner of The Future Fund LLC, expressed concern on X that Musk might need to sell billions in Tesla shares to fund a possible $40-50 billion TikTok acquisition.

“Frankly I can’t see Elon Musk swapping TSLA shares for TikTok’s US business given that TSLA is on the verge of achieving generalized unsupervised autonomy but one never knows,” Black wrote.

Tesla’s stock previously experienced a 70% drawdown between April 2022 and January 2023, which Black attributed partially to Musk’s Twitter acquisition and Tesla’s subsequent EV price cuts.

“We certainly see the business logic for X, but don’t like the overhang it would create on TSLA shares,” Black wrote, drawing parallels to Tesla’s stock pressure following Musk’s Twitter purchase.

See Also: Charlie Munger Said His Family Only Owns 3 Stocks – ‘Damn Right’ They’re Rich Because Diversification Is For ‘Know-Nothing Investors’

Wedbush Securities analyst Dan Ives noted that Musk’s relationships with both Trump and Beijing could facilitate a deal.

The social media platform has seen a 38% increase in employee departures in late 2024 compared to the previous year, though it maintains over 2,000 job openings across U.S. locations.

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Image Via Tesla

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.