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Tesla loses $125 billion in market value after Elon Musk strikes deal to buy Twitter

Tesla shares have tumbled as Wall Street experts worry that a Twitter acquisition could have a big impact.

Buying Twitter may be good news for billionaire Elon Musk, but bad news for Tesla shareholders. Just a day after Twitter announced it would sell itself to Elon Musk for $44 billion, Tesla shares fell 12.2 percent, wiping more than $125 billion off its market value. .

When Elon Musk announced he had $44 billion in cash to buy Twitter, he said he would give himself $21 billion and borrow the rest. However, no one knows where Elon Musk will get the $21 billion in cash. Will Elon Musk sell some of his Tesla stock?

In addition, there is the social network Twitter, which has a statement of freedom of speech. Analysts fear Elon Musk will clash with the Chinese government, a key market for Tesla.

Elon Musk may also be distracted by running too many companies at once. Currently, Elon Musk is the CEO of Tesla and SpaceX, and is involved in Neuralink (an artificial intelligence company developing brain implants) and The Boring Company (the tunnel company).

Billionaire Elon Musk is currently the world’s richest man with a combined fortune of $257 billion, but two-thirds of his wealth comes from Tesla stock. If Elon Musk sells some Tesla stock to raise funds to buy back Twitter, Tesla’s stock price will continue to fall. Not only that, but Elon Musk also had to face huge taxes. This has Tesla shareholders extremely concerned.

What do you think?

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