The stock of electric vehicle company Tesla was down over 9 percent in afternoon trading on Tuesday as the Nasdaq Composite which is heavy on tech stock slipped about 2.5 percent.
Stocks of other tech companies such as Meta, Google, Amazon, and even Apple were down between 2 and 5 percent.
The decline experienced by Tesla comes about 24 hours after its CEO, Elon Musk received approval to buy Twitter for $44 billion from its board. “Twitter, Inc. today announced that it has entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion. Upon completion of the transaction, Twitter will become a privately held company,” Twitter’s announcement read. According to the report, the decline experienced by Tesla may be a simple reflection of how investors feel about Elon Musk acquiring Twitter. Telsa investors may also be concerned about the possible distractions that could come from owning a platform like Twitter, a report said.
Elon Musk has a huge influence on Tesla’s operations and is also in charge of his other companies Space X, Neuralink, and The Boring Company where he plays key roles. Acquiring Twitter will require him to be heavily involved. He has also revealed some of his plans for Twitter which he is taking private.
Last week, Tesla reported its first-quarter earnings for 2022. Revenue for the quarter came in at $18.76 billion compared to the $17.80 billion that analysts expected revenue to come in for the quarter, and was up 81 percent from the previous year.
According to what the company told shareholders, the growth in revenue was a result of an increase in car deliveries and also an increase in average sales price. Tesla produced a total of 305,407 vehicles and made a delivery of 310,048 vehicles for the period ending March 31st, 2022.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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