July 24, 2024


Complete Canadian News World

Tesla stock price drops

Tesla stock price drops

Placeholder while loading article actions

Tesla stock – and Elon Musk’s fortune – took a massive hit on Friday, continuing its downward spiral and potentially endangering the billionaire A deal to buy Twitter.

Shares of the electric car company, from which a large part of Musk’s fortune comes, fell more than 10 percent during Friday’s trading, dropping at one point to about $636 a share. That’s about 35 percent down from its price on the day Musk’s deal to buy Twitter was announced.

The downturn in Tesla’s stock could have more than a superficial effect on Musk’s fortune.

Tesla’s value fell on Tuesday more than twice the cost of Twitter

I took out the musk Extensive Personal Loans Which is closely related to the value of Tesla stock. On occasion, he has reduced up to 50 percent of his shares in Tesla as a guarantee to back it. With the company’s stock price approaching $600, Musk is entering dangerous territory with lenders — where they can look to some of his shares to ease their confidence in his ability to pay, according to analysts.

“The Street will start to speculate, given the stock’s performance, that it is getting dangerously close to this area symbol, and that puts more pressure on the stock,” said Dan Ives, analyst at Wedbush Securities. “Because it’s a cascade effect. The stock is down 35 percent since the Twitter deal, and that wasn’t off the map.”

Will buy Elon Musk Twitter with a guarantee

Musk, the world’s richest person, launched a hostile takeover bid to buy Twitter this year. The company and CEO agreed to a $44 billion deal last month, but Musk tweeted last week that the deal was so “I’m waiting” While looking at the number of automated bots on the site.

READ  Standard & Poor's downgrades Russia's rating to junk, Moody's issues spam warning

It may be a tactic to renegotiate the price, analysts said, which he said you might try.

And if Musk can show that he was misled about the number of fake accounts, it would give him the option to steer clear of the “adverse material effect” clause, even though legal experts have expressed skepticism about the strategy.

Tesla investors have been concerned about Musk’s plan to buy Twitter for the past several weeks, sending the stock down.

Musk is financing the Twitter acquisition, in part, through financial commitments based on his Tesla stock. If the stock drops significantly or has to give up equity, it could cause chaos in his financing plan.

He also faces Allegation in a news report That he sexually harassed a flight attendant on a corporate plane. Musk denied the allegations online, calling the article a “politically motivated hit” that was intended to disrupt the Twitter deal.

S&P 500 . Index Fell in a bear market on FridayAs investors remain concerned about inflation and global economic factors.

Elon Musk says he may try to renegotiate $44 billion Twitter deal for less

Tesla’s annual report warned of the potential consequences of Musk’s personal loans on its stock.

We are not a party to these loans. … if the price of our common stock drops significantly, Mr. Musk may be forced by one or more banking institutions to sell shares of Tesla common stock to meet his loan obligations,” according to the document. “Any such sales could cause a further decline. at our normal share price.”

READ  US robot orders surge 40% as labor shortages persist and inflation persists

Tesla’s price has fallen to one of the lowest stock price points since he became the richest person in the world, repeatedly, in September of last year. Musk was worth about $212 billion on Friday, according to the Bloomberg Billionaires Index, down from about $259 billion when He announced his intention for the first time To take control of Twitter.