Does Elon Musk's cryptic Elvis song tweet refer to his Twitter bid?

The world’s richest person caused a stir last week after he filed a $43bn proposal to buy the social network

Elon Musk said the economic interests of Twitter’s board are not aligned with its shareholders. Reuters

Billionaire entrepreneur Elon Musk kept investors in the dark at the weekend, floating a cryptic tweet with the word “tender”, a likely wink-and-nod reference to a potential tender offer to Twitter 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, which led Twitter to adopt a so-called poison-pill provision on Friday to make it harder for Mr Musk or a group of investors to acquire more shares.

If Twitter directors ultimately reject him, the world could learn whether Mr Musk was truly threatening a direct appeal to shareholders or had just added the 1956 Elvis Presley hit Love Me Tender to his playlist.

Mr Musk may try to partner with investors, including Oracle — given that its co-founder Larry Ellison is on Tesla's board — along with a group of private equity firms including Thoma Bravo, Bloomberg Intelligence analysts Mandeep Singh and Ashley Kim wrote on Friday.

That partnership could raise the bid to $50bn, they said.

An acquisition is far from certain, even without the poison-pill provision and defensive tactics from the company’s board. Mr Musk said at an April 14 TED conference that he is “unsure” if he will actually be able to acquire the company, adding that he has a back-up plan, without offering details.

At the weekend, Mr Musk said the economic interests of Twitter’s board are not aligned with shareholders.

He was responding to a tweet about board members’ stock holdings, saying that with the departure of Twitter founder Jack Dorsey, the board “collectively owns almost no shares”.

He had previously tweeted that the board risks liability if it acted against shareholders.

Mr Dorsey, who remains on the company’s board until later this year, also took the unusual step of criticising its managers on the platform.

“It’s consistently been the dysfunction of the company,” Mr Dorsey wrote of Twitter’s board.

With all eyes on the battle for Twitter, Wall Street banks are taking sides. Twitter has hired Goldman Sachs Group and JP Morgan Chase, the latter of which has sparred previously with Mr Musk over the valuation of hundreds of millions of dollars in Tesla stock warrants. Morgan Stanley is advising Mr Musk.

Twitter shares have risen about 15 per cent since Mr Musk disclosed a 9.2 per cent stake in the company on April 4 but, at $45.08 as of April 14, are well shy of his offer price, reflecting doubts that a deal will go through.

Tesla has dropped 9.2 per cent in the same period, as its investors grapple with the prospect of its chief executive being distracted with another public company or passion project.

The electric-vehicle maker is also under pressure in China, where its massive Shanghai car factory has been closed for weeks by the region’s Covid-19 lockdowns.

Later this week, Tesla will report first-quarter earnings after posting record deliveries in the first three months of the year. Analysts are estimating revenue of about $17.8bn and adjusted earnings of $2.27 a share.

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  Tesla chief executive Elon Musk speaks during the opening day of the Tesla Gigafactory in Gruenheide, Germany. EPA

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  Musk speaks next to German Chancellor Olaf Scholz and the prime minister of Brandenburg state, Dietmar Woidke, during the opening ceremony. AFP

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  The Tesla chief, right, was cheered as he oversaw the handover of the car maker's first German-made cars at the Gruenheide plant. EPA

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  Musk described the opening as "another step in the direction of a sustainable future". EPA

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  Tesla is likely to launch a test version of its new "full self-driving" software in Europe, possibly next year, the chief executive said. EPA

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  Musk dances as he hands over the first Teslas from the new factory. Getty Images

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  Musk said battery production will be a "challenge" next year and a "limiting factor" in the coming years. Reuters

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  Tesla cars are parked at the site of the new Tesla Gigafactory in Gruenheide, Germany. Reuters

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  Tesla was handing over the first Model Y cars made at its €5 billion Gruenheide plant to clients on March 22, the company said. Getty Images

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  The new Tesla Gigafactory is the company's first European production centre. Getty Images

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  Newly completed Tesla Model Y electric cars parked at the site near Gruenheide. Getty Images

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  The new factory is the largest investment in a German car factory in recent history. Getty Images

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  A road sign reading 'water protection area' next to the Tesla logo at the site of the Tesla factory. EPA

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  A road sign reading 'Tesla Street' at the new plant. EPA

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  A building under construction at the Tesla factory. EPA

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  At full capacity, the factory will produce 500,000 cars annually. EPA

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  Tesla plans to hire 12,000 workers at the plant. Bloomberg

“Tesla’s next phase of growth depends primarily on eliminating capacity constraints in Europe as the Berlin factory begins deliveries,” Bloomberg Intelligence analysts Kevin Tynan and Andreas Krohn wrote last week.

“The pace of adoption and subsequent competition, given a more intense government regulatory and subsidy environment, ratchets up the urgency of getting high-volume nameplates built overseas.”