Tesla Stock: This Is Not Good News
Tesla Stock Falls as Musk Sells Shares to Fund Twitter Purchase
Tesla's stock price has taken a hit after a regulatory filing revealed that CEO Elon Musk had sold $3.95 billion worth of shares in the electric car maker. The news comes as Musk is in the process of acquiring Twitter for $44 billion, and has raised concerns that he is using Tesla's stock as collateral to fund the purchase.
Tesla Stock Falls 12% After Musk's Sale
Tesla's stock fell 12% in premarket trading on Tuesday after the news of Musk's sale was announced. The stock has now lost more than 20% of its value since April, when Musk first announced his intention to buy Twitter.
Musk Sells Shares to Fund Twitter Purchase
Musk's sale of Tesla shares is seen as a sign that he is serious about acquiring Twitter. The deal, which is expected to close later this year, will give Musk control of one of the world's most influential social media platforms.
Concerns About Musk Using Tesla Stock as Collateral
Some analysts have expressed concerns that Musk is using Tesla's stock as collateral to fund the Twitter purchase. This could pose a risk to Tesla's shareholders if the value of Twitter's stock declines.
Analysts: Tesla Stock Could Fall Further
Analysts say that Tesla's stock could fall further if Musk continues to sell shares to fund the Twitter purchase. They also note that the deal could be delayed or even fall through, which would further hurt Tesla's stock price.
Investors Should Be Cautious
Investors who are considering buying Tesla stock should be aware of the risks involved. The stock could continue to fall in the short term, and there is no guarantee that the Twitter deal will close.