Tesla stock drops more than 9% after Musk’s Twitter deal

A Tesla store is seen in Shanghai, China, February 1, 2022.

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Tesla The stock fell more than 9% in the afternoon due to heavy technology Nasdaq Composite down 2.5%. Other huge technology stocks such as appleAnd AmazonAnd The Google and dad facebook dead It also decreased between 2% and 4%.

The dips come just a day after Twitter’s board of directors Musk approved $44 billion The takeover of the company, showing some decline, may be a reflection of investor concerns about the deal. Musk has $25.5 billion in fully committed debt, including $12.5 billion in loans for his Tesla share. The deal also includes equity of $21 billion.

Despite being the world’s richest person, much of Musk’s wealth is tied up in Tesla stocks, meaning he will likely have to borrow against his holdings to fund the deal.

Telsa investors may also be concerned about the potential deviations that could come from owning a platform like Twitter. It seems that Musk wants to seriously affect the company’s operations, which could lead to a time crunch for him. Assuming the deal closes, Musk will be responsible for it Teslaand Twitter and SpaceX. He also owns two smaller projects, The Boring Company and Neuralink.

Tesla said in its first-quarter 2022 earnings report on April 20 that while auto revenue rose 87% from the same period a year earlier to $16.86 billion, the company lost about a month of “construction volume” in Shanghai due to the Covid shutdown.

“Production is resuming at limited levels, and we are working to get back to full production as quickly as possible,” Chief Financial Officer Zach Kirkorn said on the company’s earnings call.

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