In 2 hours, Tesla loses 2 times the capitalization of Twitter

At the opening on Wall Street on Tuesday, Tesla stock fell more than 10% in just two hours. The announcement, the night before, of the takeover of Twitter by its CEO caused shareholders to react. Over $110 billion has evaporated, the equivalent of more than double Twitter’s capitalization.

The numbers may seem crazy. They mainly reflect the incredible valuation of the electric car manufacturer, which exceeded 1000 billion dollars at the end of last year. Tesla is one of the few companies to be able to claim such a performance – two months earlier, it was the Meta group (Facebook, Instagram, WhatsApp) which also exceeded the mark.

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Twitter funding concerns

This significant drop, which complements that of the beginning of the month at -14%, is still explained by the news surrounding the takeover of Twitter by Elon Musk. The $44 billion takeover does not suit shareholders, who fear both that Elon Musk “must divert even more attention” to Tesla, said an analyst to Forbes, and that the billionaire comes to cut in his shares of the automaker.

Today, it is still likely that Elon Musk will be forced to sell some of his shares as the financing plan for the takeover of Twitter is marked by a loan from Morgan Stanley bank up to 20 billion dollars. and a $21 billion equity financing. With all of the economic news for the month, Tesla stock has lost more than 26% of its value.

However, at the same time, Tesla had never posted such a good quarterly balance sheet. In the first three months of the year, the brand recorded its highest profits. This is its most profitable quarter as the number of deliveries per month continues to increase thanks to the new factories launched in Europe, Asia and North America and the popularity of its two flagship models: the Model 3 and the Model Y.

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