Twitter isn’t the only giant Elon Musk needs to worry about now that his acquisition of the social media platform has been approved by the board—he still has Tesla to keep an eye on, too.
According to a report by Reuters, the electric car manufacturer lost $126 billion (P6 trillion) in value following Musk’s purchase of Twitter. This comes following investor concerns that Musk will sell Tesla shares to fund the Twitter deal.
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So far, Musk has yet to disclose exactly where he’ll be sourcing the $21 billion (P1.93 trillion) in cash required for the $44 billion (P2.3 trillion) Twitter acquisition from. A 12.2% drop in Tesla stocks amounting to $21 billion did take place on Tuesday, though—which could be just a coincidence, considering the Nasdaq closed at its lowest level since 2020 on the same day.
Tesla’s recent stock troubles have impacted Twitter shares, too, with Reuters reporting that the platform’s recent 3.9% drop “reflects investor concern that the precipitous decline in Tesla's shares, from which Musk derives the majority of his $239 billion fortune, could lead the world's richest person to have second thoughts about the Twitter deal.”
Elon Musk backing out? It doesn’t sound very likely if you ask us, considering his many business ventures. How do you think this situation will play out? Let us know in the comments.
