Elon Musk’s cryptic tweet channeling Elvis baffles investors

Musk kept investors in the dark this weekend, floating a cryptic message with the word "tender" in it, a likely wink and nod reference to a potential tender offer to shareholders for control of the company.

The world's richest person caused a stir last week after he filed a $43 billion proposal offering $54.20 a share for the social network.

The world could learn if Musk was threatening a direct appeal to shareholders or if he had just added a song from Elvis.

Musk may try to work with investors like Oracle because of the fact that Larry Ellison is on the board. They wrote that the partnership could raise the bid to $50 billion.

Even without the poison-pill provision and defensive tactics from the company's board, an acquisition is far from certain. Musk said at an April 14 TED conference that he is unsure if he will be able to acquire the company, but he has a back-up plan.

Jack Dorsey, who remains on the company's board until later this year, criticized its managers on the platform this weekend.

Wall Street banks are in the middle of the battle for social media. Goldman and JP Morgan have sparred with Musk over the valuation of hundreds of millions of dollars in stock warrants. Morgan Stanley is working with Musk.

Since Musk disclosed a 9.2% stake in the company on April 4, the shares have risen 15%, but are well shy of his offer price, reflecting doubts that a deal will go through. In the same period, investors of the company are worried about the prospect of the CEO being distracted with another project. The electric-vehicle maker is under pressure in China, where it has been forced to shut down its huge automobile factory for weeks due to Covid-19 lockdowns.

In the first three months of the year, the company delivered a record number of cars. Revenue is expected to be $17.8 billion and adjusted earnings to be $2.27 a share.

The next phase of growth depends on removing capacity constraints in Europe as the Berlin factory begins deliveries.