Posted by Sachit Bhat On 27-Apr-2022 11:28 AM
Listen to this Article:
Tesla Inc on Tuesday lost $126 billion in value with shares dropping to around 12 percent. Investors growing concern and analysts' speculation about how Musk will go about the Twitter deal have led to this downfall.
Tesla Inc lost a whopping $126 billion in value on Tuesday. This all happened amid the rising speculations that CEO Elon Musk may have to sell shares to fund his $21 billion equity contribution to his $44 billion twitter buyout.
Although the deal has nothing to do with Tesla, as the company is in no way involved with the Twitter deal, their shares have been targeted due to speculations after Musk reportedly declined to comment publicly on where the cash for the acquisition is coming from. There was a drop of 12.2 percent in Tesla’s share which accounted for a $21 billion drop in the value of his Tesla stake.
Daniel Ives, Wedbush Securities analyst said that there has been tension about the upcoming stock sales by Musk and speculations are ripe about Musk being distracted by Twitter and this in turn has weighed on Tesla’s shares. He added, “This is causing a bear festival on the name”.
Tesla on the other hand didn’t respond to the requests for comments. Twitter shares also saw a drop of 3.9 percent and closed at $49.68 even though Musk agreed to buy it on Monday at a price of $54.20 per share in cash. This reflects the investor’s concern as Elon derives the majority of his $239 billion fortune from Tesla. This could also lead the world’s richest person to have second thoughts about the Twitter deal.
OANDA senior marketing analyst Ed Moya said, “If Tesla’s share price continues to remain in freefall that will jeopardize his (Elon’s) financing”.
20-May-2022 11:33 AM
20-May-2022 10:23 AM