Tesla shares lose $126 billion in market value after Musk buys Twitter

By Rebecca
2 Min Read
Tesla shares lose $126 billion in market value after Musk buys Twitter

The shares of Tesla, Elon Musk’s electric car company, lost US$ 126 billion in market value this Tuesday (26), according to the specialized consultancy Economic. The 12.18% drop came a business day after Musk reached an agreement to acquire the social network Twitter.

After the devaluation, the automaker maintained a market value of US$ 907 billion. If we consider the period since April 4, the date of the announcement of Musk’s stake in the capital of Twitter, Tesla has lost about 23% or a loss of US$ 275 billion. As Musk owns 17% of the company’s shares, he would have lost more than $40 billion, according to Bloomberg. Part of the drop is explained by the concerns of Tesla investors with the purchase of Twitter. To complete the deal, Musk secured $25.5 billion in debt commitments, including $12.5 billion in loans with his Tesla shares. The deal also includes US$21 billion in equity. In addition, investors fear that the entrepreneur will divide his attention between Tesla and Twitter.

Still, Tesla remained the fifth-largest company by market cap on the Nasdaq Exchange, according to Economic. The automaker is behind only Apple, Microsoft, Alphabet (holding Google) and Amazon. In addition, shares of electric vehicle manufacturers Rivian and Lucid also closed down 9.5% and 8.7%, respectively. Twitter announced this Monday (25) that it closed the deal to be acquired by billionaire Elon Musk. He bought all of the company’s shares at a unit price of US$54.20 in a transaction valued at around US$44 billion¬† Upon completion of the deal, the founder of Tesla and SpaceX will turn the social network into a private company.

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Rebecca is an Independent content writer for breldigital, She writes content on any given topic. She loves to write a case study article or reviews on a brand, Be it any topic, she nails it