The stock value of Tesla Inc hit a major stumble, this week, as its valuation slipped 12 percent on Tuesday on investor concern that the acquisition of Twitter could lead Elon Musk to sell off his Tesla shares in the $44 billion deal. Shares of Tesla Inc closed down at $876.42 on the Nasdaq, on Tuesday. That is a drop of more than $120 USD per share from its value the day before; and it is the worst single-day performance for any company on the Nasdaq since the beginning of the year.
As of the close of day on Tuesday, the electric-vehicle manufacturer lost $275 billion in market capitalization, since April 4. That is the day when Musk revealed his plan to increase his stake in Twitter. This is a dip of approximately 23 percent. In all, this has dragged down the overall dollar value of Musk’s 17 percent stake in Tesla which, in itself, has fallen by at least $40 billion. This is nearly double the value of his equity portion, which Musk had pledged for the Twitter transaction.
Now, Elon Musk owns more than 173 million Tesla shares. This is equivalent to about one-sixth of the electric vehicle maker’s total market value (which, if you’re trying to do the math, falls just short of $1 trillion). The value of his shares is more than $150 billion, and he still can use about $60 billion worth of his shares as collateral for any loans he may want.
Of course, Tesla is not the only company to face struggles this week. Indeed, equity markets across the globe have seen more broad selloff activity, mostly as a result of slower-than-expected economic expansion combined with growing inflation. On top of all this, though, investors have abandoned high-growth companies in anticipation that the Federal Reserve will soon introduce a new series of rate hikes.
