Reuters: Tesla Stock Crash Could Imperil Twitter Deal

April 27, 2022 Business, Social Media

Reuters reports:

Tesla Inc lost $126 billion in value on Tuesday amid investor concerns that Chief Executive Elon Musk may have to sell shares to fund his $21 billion equity contribution to his $44 billion buyout of Twitter Inc. Tesla is not involved in the Twitter deal, yet its shares have been targeted by speculators after Musk declined to disclose publicly where his cash for the acquisition is coming from.

The 12.2% drop in Tesla’s shares on Tuesday equated to a $21 billion drop in the value of his Tesla stake, the same as the $21 billion in cash he committed to the Twitter deal.  The widening spread 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.

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