Elon Musk’s weird behavior has taken a big bite out of Tesla’s market value. Yesterday, the electric car company lost $126 billion in value because investors were worried that CEO Elon Musk might liquidate his company shares to pay for the $21 billion equity contribution to his $44 billion Twitter acquisition.
To buy Twitter, Musk didn’t say where he got the money to do so. This led to rumors that he might have sold Tesla shares to buy the social media platform, which caused people to wonder.
The value of Musk’s stake in Tesla went down by 12.2%. This is the same amount of money that he agreed to pay to buy Twitter.
It’s worth noting, though, that Tesla’s share price has dropped along with many other technology-related stocks. People are worried about slow global growth, so the Nasdaq closed at a level not seen since December 2020, the report says.
Twitter’s shares also fell on Tuesday, dropping 3.9% to close at $49.68, even though CEO Elon Musk bought them for $54.20 each in cash. Experts think that the huge drop in Tesla’s shares, which is the main source of money for CEO Elon Musk, might make him reconsider buying Twitter.
They also think that, even though Tesla has been selling a lot of electric cars and there is a lot of demand for them in many different car markets, the recent drop in its market value could be bad for the company and its investors.