Investors may see Tesla as a 'house of cards' after watching Elon Musk sow chaos at Twitter: CNBC analyst
Venture capitalist Bradley Tusk argued on Wednesday that Elon Musk's chaotic tenure as CEO of Twitter could soon spill over to his other businesses.
In particular, he said that a Musk failure at Twitter could have dire consequences for electric car manufacturer Tesla.
"Tesla's market cap a few days ago was $564 billion, General Motors is $56 billion," he said. "General Motors sold... 22.2 million cars last year, Tesla sold around 900,000. So a lot of Tesla's value is based on hype, it's based on, sort of, promise and potential. But it's based on this belief that Elon Musk can't fail."
Tusk went on to say that failure at Twitter could burst this bubble for Musk and could cause investors to question is business acumen at other ventures.
"What you have to worry about is if investors say, 'You know what -- is Tesla a little bit of a house of cards?'" he said. "Should Space X be valued as highly as it is?"
Tusk was then asked if he believed Musk was likely to fail at turning Twitter around, and he replied that he did.
"I've yet to see a new idea come out of him or his team that's particularly interesting," he said of Musk's attempts to remake Twitter's business model.
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