Tesla’s market capitalization lost $ 126 billion because of Elon Musk

According to Reuters, Tesla has just lost $ 126 billion in market capitalization as the share price fell 12.2% in trading on April 26. The American electric car company is not involved in the transaction with Twitterbut the value of the company’s stock was significantly affected right after the CEO Elon Musk declined to publicly disclose the source of the cash he used to buy Twitter for nearly $44 billion.

It is not clear what benefits the acquisition of Twitter will bring, but Elon Musk’s fortune also evaporates quickly Reuters

It’s unclear what benefits the Twitter acquisition will bring, but Elon Musk’s fortune is also evaporating quickly. According to Bloomberg, the value of Elon Musk’s shares in Tesla dropped about $21 billion, or $21 billion in cash he pledged in his deal with Twitter.

Tesla’s share price drops amid a growing sell-off in markets world stock, due to slower economic growth and prolonged inflation. Another factor is the flight of investors from high-growth companies as the US Federal Reserve (Fed) prepares a series of significant interest rate hikes.

“Tesla encountered three attacks today. In addition to the sell-off in corporate stock and the broader sell-off in high-growth stocks in general, Tesla stock’s condition also reflects concerns that Elon Musk may be spreading his own energy, and/or His reserve potential is too thin for this new challenge,” said Arthur Hogan, chief market strategist at National Securities Corp.

Last week, Tesla reported quarterly results with impressive results. Prior to April 26, its stock was ranked among the best-performing of the high-growth stocks in this year’s NY FANG+ Index. However, Tesla’s share price is likely to remain at risk right now as the uncertainty surrounding the issues remains unclear.

According to OANDA senior market analyst Ed Moya: “If Tesla’s stock price continues to free-fall, it will jeopardize Elon Musk’s finances.”

As part of the deal with Tesla, Elon Musk took out a $12.5 billion margin loan tied to his Tesla stock. University of Maryland Professor David Kirsch, whose research focuses on innovation and spirituality businesssaid investors are starting to worry about “a flood of margin calls” on Elon Musk’s loans.