Elon Musk, the CEO of Tesla, made an offer to buy Twitter on Thursday, sending the company’s stock lower.
Investors may be concerned about Musk’s distraction while Tesla (TSLA) ramps up production at new factories, but there are other issues to consider.
The stock of Twitter (TWTR) climbed early in the day, then fell 0.3 percent to $45.72 shortly after noon, moving further away from Musk’s $54.20 offering price—a number that suggests Musk’s affinity for marijuana jokes. The shares of Tesla (TSLA) was down more than 3%.
Earlier in the day, a change in Twitter stock contributed approximately $1 billion to the company’s market value. The price has dropped a little. Tesla stock, which is nearly 25 times more valuable, has lost about $37 billion in value as a result of the decision. After the bid, the companies are worth less as a whole.
Investors believe Musk’s bid will be rejected by Twitter’s board of directors, based on the company’s initial move. In his discussions with Twitter executives, Musk indicated this was his best offer.
Even if they are apprehensive on Thursday, Twitter investors are likely pleased with Musk. Since Musk revealed his ownership in the social media network, Twitter’s stock has climbed by around 16 percent. Tesla shareholders have little reason to rejoice. The stock is down nearly 9%, while the S&P 500 and Nasdaq Composite are down roughly 3% and 6%, respectively.
Tesla’s stock is more volatile than the market on average. One of the reasons why stocks are falling even further is because of this. Tesla investors, on the other hand, may be concerned about Musk’s use of Twitter.
There’s a chance you’ll be distracted. During a time when EV sales are picking up over the world, Musk’s attention may be drawn away from Tesla by Twitter. Tesla’s sales—and competition—are likely to skyrocket in the coming years.
Investors may be thinking about who else could lead Tesla besides Musk as a result of the distraction. According to Roth Capital analyst Craig Irwin, Tesla is Musk, and Musk is Musk. He doesn’t believe Tesla has another executive who can drive the firm ahead like Musk.
According to the Cali Undersecretary of Mobility, Edwing Candelo, five persons were hurt in the accident, which involved a vehicle with four occupants, including the former footballer, and a bus.
“Despite all of our medical and assistance team’s efforts, the patient Freddy Eusebio Rincón Valencia died on April 13, 2022,” according to The Imbanaco Clinic in Cali.
“There will never be a way to express what this means to us,” the hospital added. “We invite the entire country to remember him with joy for everything he brought into life through his sporting successes.”
