May 25, 2024

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Tesla (TSLA34) stock closed 12.18% down after Elon Musk's acquisition of Twitter (TWTR34)

Tesla (TSLA34) stock closed 12.18% down after Elon Musk’s acquisition of Twitter (TWTR34)

Tesla stock (TSLA34) closed sharply lower by 12.18%, at $876.42, in the Tuesday (26th) session of the American Stock Exchange, a day after the company’s CEO and largest shareholder, Elon Musk, Close a deal to buy Twitter (TWTR34) eve. you BDRs (Overseas Traded Stock Receipts) The TSLA34 Index fell 9.78% to R$137.20.

Musk has committed $25.5 billion to fund the purchase of Teitter, as well as $21 billion in equity to buy the social media platform.

It is not yet known whether Elon Musk He will choose to sell Tesla shares to partially fund the deal. The prospect of it needing to sell billions of dollars in stock has put more pressure on shares in the electric car group. Tesla is among the most valuable publicly traded companies in the world, with a value of $942 billion as of Tuesday.

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Bankers Musk and Morgan Stanley have been looking for other investors who might want to invest in a Twitter account alongside him, which will reduce the size of the check he’ll need to write himself, according to people familiar with the matter interviewed by Finance. times.

Telsa investors may also be concerned about Musk’s potential deviations from owning a platform like Twitter. It appears that Musk wants to make a significant impact on the company’s operations, which could lead to a “time management crisis” for him, CNBC notes. Assuming the deal closes, Musk will be in charge of Tesla, Twitter, and SpaceX. He also owns two smaller projects, The Boring Company and Neuralink.

It should be noted that Tesla also highlighted in its first-quarter 2022 results on April 20 that while auto revenue increased 87% year-over-year to $16.86 billion, the company lost about $16.86 billion. Shanghai due to covid lockdown.

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“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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