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Tesla Loses 50% of Value After Musk’s Twitter Acquisition

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TheStreet’s Martin Baccardax digs in to why Tesla’s  (TSLA) - Get Free Report stock has slumped to a 17-month low. The company has lost 50% of its value since the first announcement of Elon Musk’s intention to buy Twitter, and it’s only gotten worse since he officially became CEO of the social media company.

Full Video Transcript Below:

MARTIN BACCARDAX: The stock has lost about 50% of its value since Elon Musk made his intentions to purchase Twitter public in the early part of April. Now, of course, we know that Musk has had to sell several billion dollars worth of shares to satisfy some tax liabilities, he also had to sell shares to pay for the Twitter acquisition. And from all accounts, we seem to see that he is distracted and focused on establishing Twitter and its place in the social media landscape vis a vis the typical time that he would spend at Tesla and some of his other companies in which he is the CEO.

That's just simply not a combination that's going to inspire confidence, particularly when you have input costs rising. Of course, for Tesla, there's concern about end demand, and ultimately this concern about supply, given the fact that China is still susceptible to COVID restrictions. So you put those all together and you have tremendous downward pressure on a share that was once the darling of the tech space and is now, as you say, not only trading at the lowest level since 17 months, but shedding about $700 billion worth of value in less than a year.

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