Tesla Stock Plunges turn down $ 128 Billion in Value Like Twitter Deal Sparks Fear

Tesla shares fell on Tuesday as investors continued to grind to the ground by the acceptance of Twitter by CEO Elon Musk's $ 44 billion bid for the social media giant, leading to a dramatic loss over Federal Reserve interest rates.

Tesla shares fell 12% on Tuesday to $ 876, making the stock fall more than 28% from the peak in November and erasing Musk's $ 25 billion and Tesla's $ 128 billion stock, now standing at 906 billion.

"Tesla shareholders will not be happy that Musk will have to pay more attention to winning the electric car race," wrote Oanda analyst Edward Moya, commenting in an email, echoing the concerns of Adam Crisafulli of Vital Knowledge Media, who also noted the decline. to worry investors about how Musk will fund his Twitter bid.

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In a file last week, Musk revealed that he had received $ 46.5 billion in support of the Twitter deal, which included more than $ 20 billion in loans from Morgan Stanley and another $ 21 billion, making it possible he would need to sell Tesla shares and. promise others as collateral to make the agreement work.

As stocks plummeted Thursday as Twitter confirmed receiving an unsolicited cash offer, Wells Fargo analyst Colin Langan warned Tesla shareholders that the risk of Musk selling more shares could put pressure on stocks, as happened when a 50-year-old boy teased. sales (last) late last year.

Langan also said Musk's involvement with Twitter could be a distraction for the CEO who already has a full plate, pointing to two newly opened factories in Berlin and Austin, Texas, designed to double the company's production capacity worldwide.

GREAT NUMBER

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$ 243 billion. That's how Musk, who owns 21% of Tesla but has promised more than half of his stake as a mortgage, is eligible, according to Forbes. The founder of PayPal grew up in South Africa before studying at the University of Pennsylvania as a flexible student.

AMAZING FACT

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Despite Tesla's stock decline on Tuesday, Musk remains the richest man in the world - to date. Amazon founder and Chairman Jeff Bezos are approaching, a total value of $ 166 billion.

CONTRA

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"We do not believe that this Twitter application will lead to a massive sale of Musk's Tesla shares," Wedbush analyst Dan Ives said in a letter Friday, that the shares would be replaced by loans.

KEY BACKGROUND

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Tesla's shares have suffered huge losses since Musk announced he would sell about 10% of his stake in November, sparking speculation among investors about how prices would hold up during the massive downturn. Stocks plummeted to 26% as Musk sold shares in the coming weeks but recovered almost all the losses after a millionaire announced he was "going to finish" the sale by the end of December.

However, the broader market has struggled a lot since then as the Fed raises prices and loosens economic support to mitigate inflation for decades. The tech-heavy Nasdaq dropped 20% this year, returning to the bear market area on Tuesday.

TANGENT

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Although its stock is struggling, Tesla reported its most profitable quarter in the company's history last week, sending $ 3.3 billion in first-quarter revenue boosted by record delivery.

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