Tesla is not involved in the deal with Twitter and its shared will gets targeted when Musk declines to disclose where his cash is coming from.
Tesla Inc lost $126 billion value on Tuesday as the investor was concerned that the chief executive Elon Musk wanted to sell his shares to fund his $21 billion equity contribution to his $44 billion buyouts of Twitter Inc. Also, Tesla is not involved in the deal with Twitter and its shared will gets targeted by the speculators when the musk decline to disclose publicly that from where his cash for the acquisition is coming from.
Tesla Loses $126 Billion Value Because of Musk’s Twitter Deal
The 12.2% drop in the Tesla shares value and the same $21 billion into the cash which he committed to the Twitter deal. Wedbush securities analyst Daniel Ives said that the worries related to the upcoming stock sales by Tesla and the possibility that he will become distracted by Twitter weighed on Tesla shares.
Tesla doesn’t respond to the request for the comment in an immediate manner and Tesla’s share plunge will come against one of the challenging backdrops for lots of tech-related stocks. The Nasdaq closed at its lowest level from December 2020 on Tuesday as the investors worried about the slowing of global growth and lots of aggressive rate hikes from the US Federal Reserve.