Tesla Stock Soars on TikTok Speculation, Musk Potential Acquisition
Tesla (TSLA) stock surged over 6% Friday amid rumors that CEO Elon Musk is exploring a potential acquisition of TikTok. The popular social media platform faces a deadline to find an American buyer or face a nationwide ban.
TikTok Ban Imminent
The U.S. Supreme Court rejected TikTok's appeal to overturn a federal ban that prohibits major companies from offering the app in their app stores. The ban takes effect on January 19 unless TikTok's Chinese parent company, ByteDance, sells the app to an American owner.
Musk as a Potential Savior
Analysts believe Elon Musk is a likely candidate to acquire TikTok. According to Wedbush analyst Dan Ives, Beijing may favor this deal due to Musk's close relationship with Chinese President Xi Jinping. Bloomberg also reported that Chinese officials are considering such an option.
Tesla and Trump
Musk has emerged as a close ally of President Donald Trump during his campaign and now holds a quasi-governmental position heading the Department of Government Efficiency. Tesla shares have witnessed a surge of 74% since Trump's election win.
Analyst Outlook
Ives anticipates Musk's involvement in finding a solution for TikTok, potentially leading a consortium to purchase the app for an estimated $40 billion to $50 billion.