Musk’s eccentric antics have put Tesla in an uncertain position. According to Reuters, the electric vehicle (EV) maker lost $126 billion today in value due to investor concerns that Musk may liquify his company shares to fund the $21 billion equity contribution to his $44 billion Twitter acquisition.
Elon Musk didn’t disclose the source of capital with which he bought Twitter, prompting speculations that he might have sold Tesla shares to buy the social media platform.
Shares of Tesla dropped by 12.2% recently. The share value fell to the same amount as $21 billion in cash which Elon Musk committed to buy Twitter for.
Tesla’s share decline has coincided with a drop in numerous other technology-related stocks. The report adds that investors worries about sluggish global growth have resulted in a Nasdaq closure at the lowest level since December 2020.
Tesla’s shares also plunged on Tuesday, falling 3.9% to close at $49.68 despite Musk buying them for $54.20 per share in cash. Experts reckon that the massive decline in Tesla’s shares – which is Musk’s primary source of fortune – may cause him to rethink his Twitter acquisition.
Tesla has been having very successful sales and demand in multiple car markets. It is also believed that the recent slump in Tesla’s value could be detrimental for investors.