Tesla loses $126 bln in value|Tony Webster|CC BY 2.0
Tesla had a rough day when the automobile giant lost $126 billion of its total market value as its stock declined 12%, following investors’ fear that Elon Musk might sell the shares to sign off his $44 billion Twitter deal.
The Tuesday tragedy
The 12.2% share drop Tesla faced on Tuesday is equivalent to over $21 billion—the same amount Musk had planned to offer in cash to buy the micro-blogging platform.
Twitter’s shares also faced a hit as stocks fell by 3.9%, with a share value close to $49.68—Musk had agreed to buy the company at $54.20 per share.
Analysts speculate that Elon Musk might develop second thoughts about the Twitter buyout if Tesla’s shares continue to drop.
