Tesla lost over $100 Billion of its market value after Elon Musk’s Twitter purchase

As you may recall, a little over a year ago Tesla lost 20% of its market value two weeks after spending $1.5 billion to purchase bitcoin. Tesla stocks recovered about a month later. Now, history is about to repeat itself.

Today, Tesla is on pace to lose over $100 billion from its valuation in a single session Tuesday over concerns from investors that Elon Musk may sell shares to complete his takeover of Twitter. The drop comes just a day after Twitter’s board approved Musk’s $44 billion acquisition of the social giant.

As of the time of writing,  shares of the electric-vehicle maker were down by more than 12% with its market capitalization now standing at $907.3 billion. Meanwhile, Tesla has lost about 23% (nearly $250 billion) of its market cap since April 4 after Musk disclosed he had increased his Twitter stake.

Yesterday, Twitter agreed to be sold to Musk for $44 billion. Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction. The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Mr. Musk disclosed his approximately 9% stake in Twitter.

Commenting on the sale, Musk said:

“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated. I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spambots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”

https://twitter.com/elonmusk/status/1518677066325053441