Tesla Loses $125 Billion In One Day After Elon Musk Buys Twitter
Just one day after the Tesla CEO struck a deal to buy Twitter, his car company's stock has suffered a pretty big hit.
Shola Lee
Tesla's stock plummeted yesterday following Elon Musk striking a deal to buy Twitter.
Musk, who's the CEO of the electric car company, took a pretty big hit yesterday (26 April) as Tesla's stock fell by more than 12 percent.
According to reports by Markets Insider, the sharp fall is a result of concerns over Musk financing his Twitter bid of $44 billion.
Musk is said to have secured a loan for $12.5 billion against his 17 percent stake in Tesla.
Advert
He is also said to have borrowed another $13 billion from Wall Street, but hasn't said how he'll make up the remaining bid amount, which has left investors concerned and some worrying that Musk will unload Tesla stock for the takeover.
Tesla said in its recent annual filing: "If Elon Musk were forced to sell shares of our common stock that he has pledged to secure certain personal loan obligations, such sales could cause our stock price to decline."
Musk has already sold off some of his Tesla shares back in November, due to expiring stock options and a looming tax bill.
This also isn't the first time Musk's stake in the company has taken a hit after a Twitter-related purchase.
Back on 4 April, the tech mogul announced that he'd purchased a 9.2 percent stake in Twitter. The value of Musk's stake in Twitter then proceeded to drop by $40 billion, as reported by Bloomberg.
In addition to concerns over Tesla share prices, many have expressed worry over the billionaire buying Twitter. People are already speaking out against Musk's purchase, with some even leaving the platform itself.
Actor and presenter Jameela Jamil was among those who expressed concern over Musk's new purchase, with Jamil's final tweet addressing Musk's calls for more 'free speech' on Twitter.
"Ah he got twitter. I would like this to be my what lies here as my last tweet. Just really *any* excuse to show pics of Barold [her dog] I fear this free speech bid is going to help this hell platform reach its final form of totally lawless hate, bigotry, and misogyny. Best of luck."
She went on to tweet: "One good thing about Elon buying Twitter is that I will *FINALLY* leave and stop being a complete menace to society on here. So it’s win win for you all really."
Only time will tell what Musk will do with the platform and whether he'll sell Tesla stock.
If you have a story you want to tell, send it to UNILAD via [email protected]