TLDR
- Elon Musk polled X users about purchasing Ryanair after a social media fight with the airline’s CEO.
- The $35 billion acquisition could require Musk to liquidate Tesla shares like he did for Twitter.
- Tesla shares declined 4.2% Tuesday as markets fell on Trump’s tariff proposals.
- Musk says Cybercab and Optimus production will start very slow before ramping up speed.
- Tesla targets 2026 for volume Cybercab production and late 2026 for Optimus manufacturing.
Elon Musk created fresh uncertainty for Tesla investors this week. The CEO engaged in a public dispute with Ryanair CEO Michael O’Leary on social media.
The conflict centered on Starlink broadband service for airline flights. O’Leary rejected SpaceX’s offering due to fuel cost concerns. Musk called that reasoning misinformed.
The exchange quickly turned hostile. Insults flew back and forth. Musk called O’Leary a “chimp” on Monday.
Then came the part that worried shareholders. Musk asked X users if he should acquire Ryanair. The budget airline carries a valuation near $35 billion.
Twitter Replay Possible
Tesla shareholders remember what happened with Twitter. Musk’s 2022 acquisition of the social platform triggered major stock volatility. He sold Tesla shares to complete that deal.
A Ryanair purchase could follow the same script. Funding the acquisition would require about 5% of Musk’s estimated $740 billion wealth. Tesla stock represents a substantial portion of his holdings.
His net worth includes stakes in SpaceX, xAI, and Tesla. Selling Tesla shares to buy an airline would pressure the stock downward. Investors watched this play out during the Twitter saga.
The probability remains low that Musk actually buys Ryanair. But his history proves he sometimes follows through on these ideas. That uncertainty weighs on the stock.
Tesla shares fell 4.2% Tuesday. The decline wasn’t about Ryanair. Broader market weakness pulled stocks lower as the S&P 500 dropped 2.1% and Nasdaq tumbled 2.4%.
President Trump’s tariff plans related to Greenland acquisition efforts spooked investors. That macro concern dominated trading.
Production Ramp Challenges
Musk addressed questions about upcoming Tesla products. He confirmed both Cybercab robotaxi and Optimus robot will have slow production starts.
The complexity of new products determines ramp speed, Musk explained. More new components mean slower initial production. Cybercab and Optimus contain mostly new parts.
“The early production rate will be agonizingly slow, but eventually end up being insanely fast,” Musk wrote on X.
Cybercab is a two-seat autonomous vehicle without manual controls. Tesla plans volume production in 2026. The Optimus humanoid robot should enter manufacturing late next year.
Tesla currently operates limited robotaxi service in Austin. Those tests use Model Y vehicles equipped with Full Self-Driving software. Initial operations included human safety monitors.
In December, Musk announced Tesla was testing robotaxis without safety monitors present. That represents progress toward fully autonomous operations.
Valuation Concerns
Tesla’s market cap stands at $1.39 trillion. A large portion of that valuation depends on self-driving technology and robotics potential. Electric vehicle sales still generate actual revenue and profits.
Musk has claimed Optimus could eventually surpass the automotive business in size. That projection assumes successful mass production and adoption.
Tesla stock traded up 0.5% in premarket Wednesday at $421.24. Shares have declined 2% over the trailing 12 months.
