A Tesla store is seen in Shanghai, China, February 1, 2022.
Costfoto | Future Publishing | beautiful pictures
Tesla stocks fell more than 10% in the morning due to heavy tech Nasdaq Composite drops about 3.2%. Other big tech stocks like Apple, Amazon, Google and Facebook parents Meta also decreased from 2% to 4%.
The drop came just a day after Twitter’s board of directors approved Musk’s $44 billion acquisition of the company, suggesting some decline may be a reflection of investor interest in the deal. Musk has secured a fully committed $25.5 billion debt, which includes $12.5 billion loan against his Tesla stock. The deal also includes $21 billion in equity.
Despite being the richest person in the world, most of Musk’s fortune is tied up in Tesla stock, meaning he will likely have to take on debt to finance the deal.
Tesla investors may also worry about the possible distractions of owning a platform like Twitter. Musk seems to want to heavily influence the company’s operations, which could lead to a crunch time for him. Assuming the deal closes, Musk will be in charge Tesla, Twitter and SpaceX. He also owns two smaller ventures, Boring Company and Neuralink.
And Tesla said in its first-quarter 2022 earnings report on April 20 that, while auto sales grew 87% year-over-year to $16.86 billion, the company lost about a month of “construction volume” in Shanghai due to Covid shutdown. .
“Production is continuing to be limited and we are working to get back to full production as quickly as possible,” said CFO Zach Kirkhorn. know in the company’s earnings call.
