27 Apr 2022
Tesla Value Plunges by $126 Billion over Elon Musk’s Twitter Buyout Funding Worries
The Index Today
Elon Musk’s Tesla Inc. plummeted by $126 billion in value amid concerns over the source of the funding of his Twitter Inc. takeover deal.
As per Yahoo Finance, even though Tesla does not have any direct involvement with its CEO’s acquisition of the social media platform, Musk’s refusal to divulge the source of the money required to buy Twitter has set speculators on the edge. As a result, Tesla’s shares have tumbled by 12.2% which amounts to $21 billion which is the same sum required by Musk to close the Twitter deal.
Daniel Ives, the analyst at Wedbush Securities, contended that the Tesla stock plunge can be attributed to expectations that Musk will have to sell his Tesla shares to finance his Twitter acquisition deal, which they believe, could also be potentially sidetracking the Tesla CEO.
Twitter’s shares also plummeted on Tuesday by 3.9%, ending at $49.68 even as Musk consented to buy the social media giant for $54.20 per share in cash for about $44 billion in total, reported Yahoo News.
This comes in the midst of a particularly exacting time for technology stocks with Nasdaq falling to its lowest level on Tuesday since December 2020, spurred by investor concerns over a global growth slowdown and additional hawkish interest rate hikes by the U.S. Federal Reserve.