CNBC reports that just one day after Twitter’s board approved Musk’s $44billion bid for the company, Tesla stock dropped over 11%
Since the bulk of Musk’s wealth is tied up in Tesla stock, it seems investors may be concerned he’ll have to borrow against his holdings to fund the Twitter deal. It would also add another detailed endeavor to his plate, possibly distracting him from his responsibilities at Tesla which doesn’t sit well with investors.
CNBC reports that once the deal closes, Musk will be the head of Tesla, SpaceX, Twitter, the Boring Company and Neuralink. Still Tesla reported in its first-quarter 2022 earnings that automotive revenue was up 87% from the prior year.
CFO Zach Kirkhorn said that even though Tesla lost a month of “build volume” because of COVID shutdowns, “production is resuming at limited levels, and we’re working to get back to full production as quickly as possible.”