Tesla capitalization evaporated $ 126 billion in 1 day, Elon Musk’s fortune dropped $ 40 billion in the blink of an eye because of Twitter
According to Bloomberg news, although it is not clear what benefits the purchase of Twitter will bring, but Elon Musk’s fortune has quickly evaporated. Tesla’s total market capitalization lost $126 billion in the April 26, 2022 trading session as the stock price dropped 12%. The main reason is that investors are worried that Elon Musk will sell shares to get money to buy Twitter for $ 44 billion.
Since the session on April 4, 2022 when Elon Musk revealed his plan to buy Twitter, the total market capitalization of this electric car company has evaporated more than $ 275 billion, equivalent to a decrease of 23%. The total value of shares held by this founder, equivalent to 17% of Tesla shares, also decreased by more than 40 billion USD.
This is not very happy news for Elon Musk after Tesla achieved a profit that exceeded forecasts in the first quarter of 2022.
Bloomberg news reported that the sell-off of Tesla shares took place in the context of global stocks on fire. High inflation has made many investors worried about slowing growth and economic recession.
Besides, some experts believe that the ability of the US Federal Reserve (FED) to raise interest rates against inflation also causes many people to withdraw capital from securities.
In this troubled context, billionaire Elon Musk did not make any public move to the capital he raised to fulfill his commitment to spend $ 44 billion to buy Twitter. All we know so far is that the founder will use Tesla stock as collateral for a loan. This in turn stimulates investors to sell off stocks.
“Elon Musk is taking too much risk with Tesla shares as collateral. If the stock price plummets, they will create an uncomfortable situation,” said Russ Mold of Aj Bell.
*Source: Bloomberg
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