The Clap
Tesla shares were down more than 12% by the end of yesterday’s trading session amid Elon Musk’s approved deal to acquire Twitter, & a wider market fall.
Twitter deal
In securing $25.5 billion in debt funding for the deal, Musk used some of his Tesla shares as collateral for half of that amount. Musk’s wealth comes mainly from owning Tesla shares, suggesting that any other collateral will have to come from selling shares in the electric vehicle producer.
Market slump
U.S. equity indices had a rough day yesterday, particularly the tech-heavy NASDAQ, which fell almost 4%. However, Tesla’s 12% drop was more aggressive, suggesting investors are concerned about Musk’s (or anyone for that matter) ability to oversee all the companies he owns. Musk acquiring Twitter means he’s now in charge of Twitter, Tesla, SpaceX, the Boring Company, & Neuralink.
