Why Tesla Stock Plunged After Elon Musk Takeover of Twitter

The takeover of Twitter by Elon Musk is making a lot of noise. A billionaire’s whim according to some, a risk to freedom of expression for others… The fact remains that rational investors “ticked” about the consequences of this 44 billion dollar operation on You’re here.

Will Elon Musk sell billions of Tesla shares?

Tuesday, by peeling the terms of the takeover, they discover that a part is financed by a loan of 12.5 billion directly backed by the Tesla capitalization. Then they learn that Elon Musk takes half of the sum out of his pocket, or $21 billion. We knew that the entrepreneur had a little pocket money since he sold 10% of the group’s shares between November and December last. He would have collected nearly 16 billion dollars. But where does the rest of the necessary cash come from, that is to say 5 billion?

Twitter: 5 questions to understand Elon Musk’s historic takeover bid

the FinancialTimes wonders if Elon Musk would not be led to sell Tesla shares again… By billions of dollars! It was enough for investors to discount the action of the automaker of electric cars. The action thus lost 12% in the night from Tuesday to Wednesday, more than 120 billion dollars of capitalization gone up in smoke.

Hostage to China?

In addition, other observers are wondering about the geopolitical trap that the takeover of Twitter would constitute for Elon Musk. Tesla could thus be taken hostage by countries that have little taste for the freedom of expression praised by the microblogging site. Some think of China, which has a problem with Twitter, a site particularly frequented by opponents of the regime. For Tesla, the Chinese market is too big to afford to be exposed to political retaliation. In 2021, it accounted for $14 billion in revenue, or a quarter of Tesla’s revenue. A figure that was up 108%…