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Here's why Tesla shares fell over 30% since Elon Musk's Twitter deal announcement
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Here's why Tesla shares fell over 30% since Elon Musk's Twitter deal announcement
Oct 7, 2022 3:59 AM

Elon Musk’s surprising decision to revive his Twitter offer has made Tesla's share fall drastically. Tesla shares were down by 1.8 percent in the two days since Musk signalled his go ahead for the deal again. The stock has lost 34 percent since Musk first disclosed a stake in the social-media giant on April 4.

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Some of the decline is also influenced by his prior sale of Tesla shares to pay for the acquisition, as well as concerns that he will need to sell more shares to raise money, given that most analysts anticipate the deal to finish swiftly. According to the analysts surveyed by Bloomberg News, Musk will have to sell anything between $2 billion to $7 billion worth of Tesla stock.

Elon Musk has already offloaded more than $15 billion of the company’s stock this year with selling $8.5 billion of stock in April and another $6.9 billion in August.

However, according to Jim Osman, founder of special situations research firm The Edge Consulting Group, there are alternatives available as well. This includes another round of private funding and Musk pledging his Tesla stake for a loan. But liquidating some stock will likely be part of the plan, Bloomberg quoted Osman as saying.

However, any sale by Musk would represent a small fraction of his holdings in Tesla. According to Bloomberg, Musk holds 465 million shares as of August 9, which is worth more than $110 billion.

Also Read: Yes Bank reappoints Prashant Kumar as MD & CEO for 3 years — more about him

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