Tesla shares plunge following Musk’s Twitter takeover, with $97bn wiped off valuation
Tesla’s shares plunged 11 per cent today less than a day after chief executive Elon Musk snatched Twitter for $44bn.
Twitter’s takeover wiped off $97bn off of Tesla’s valuation after Musk secured a $12.5bn loan against his share in the automotive giant, the Financial Times reported.
The extravagant entrepreneur said he will fund the acquisition with a $13bn debt from Wall Street, but has yet to specify how the remaining $21bn will be financed, raising the possibility he will need to offload billions worth of Tesla shares.
The tech world was turned upside down on Monday night after Twitter’s board accepted Musk’s offer, with many wondering what Musk will do next.
Musk has always said he wants to eradicate spam bots and make algorithms open source, meaning the code that sits behind certain posts that are directed to certain people will be made public knowledge.
The chief executive’s goal, City PM reported, could be hit by roadblocks as both the UK and EU have laws that mandate platforms to actively monitor user content.