Tesla stock

Investors have wiped $126bn (£100bn) off Tesla's value amid concern that Elon Musk may have to sell shares in the electric carmaker to fund his personal ...

He had already borrowed against about half of his Tesla shares. Twitter’s shares also slid on Tuesday, falling 3.9% to close at $49.68, even though Musk agreed to buy it on Monday for $54.20 a share in cash. The share fall also took place against a backdrop of difficult trading for tech stocks.

Investors fear that Musk will sell some of his Tesla stock to finance the $21 billion he needs to secure his buyout of Twitter.

Tesla even forewarned earlier this year that its stock price would suffer if Musk sold its shares as collateral. Since then, Tesla's stock dipped several times before Tuesday's sell-off, resulting in a total 23% drop — or $275 billion — in the EV maker's share value this month. According to multiple media outlets, the pressure on Tesla's stock largely stems from concerns over how Musk is financing his Twitter takeover.

A 12.2% reduction in Tesla shares, seen yesterday, would equate to a roughly US$21bn reduction in the value of Musk's stock.

Tesla shareholders get nothing from this except a CEO with yet another distraction.” A 12.2% reduction in shares experienced yesterday would equate to a roughly US$21bn reduction in the value of Musk’s stock, equal to the amount of his own equity that he has committed to the Twitter deal. Tesla Inc (NASDAQ:TSLA) had US$126bn wiped off its market value yesterday over concerns that chief executive Elon Musk will sell shares in the electronic car maker to fund his acquisition of Twitter Inc (NYSE:TWTR).

Tesla is highly traded, and Elon Musk's sale of more than $16 billion worth of stock last year did not appear to push share prices lower.

A lot about Mr. Musk’s plan to buy Twitter is unknown, including how involved he would be. Among those who believe in Tesla’s valuation, which is much higher than rival automakers’ relative to the size of its operations, a lot of the argument depends on Mr. Musk’s stewardship. Even Tesla acknowledges this, stating as a risk in its most recent quarterly report: “We are highly dependent on the services of Elon Musk, techno-king of Tesla and our chief executive officer. Tesla is a component in both the S&P 500 and the Nasdaq composite index. But in the past six months, Tesla shares have twice fallen nearly 12 percent, on Nov. 9 and Jan. 27. Its stock’s drop of 3.7 percent on Tuesday contributed more to the overall index’s decline. Such sales would have to be reported to the Securities and Exchange Commission, but those reports are not instantaneous. He would need to sell nearly 24 million shares at Tuesday’s price to generate $21 billion in cash. Mr. Musk’s financing package for Twitter also includes $12.5 billion in loans using his Tesla shares as collateral. Tesla’s shares have lost about 20 percent of their value since Mr. Musk first revealed that he had bought a big stake in Twitter, kicking off takeover speculation. Even for Mr. Musk, who is worth well north of $200 billion, that’s a lot of cash to come up with. Given Tesla’s enormous market capitalization and its inclusion in major stock indexes, almost everybody with a 401(k) probably owns some Tesla stock.

Plus, European energy prices soar and US probes Chinese chipmaker.

EV competition is heating up, but Tesla is well-positioned. Tesla (TSLA -12.18%) is one of those stocks that's pretty divisive in the investing world.

It just needs to continue growing right along with the expanding EV market as it's already doing. Sure, traditional automakers who are building EVs will challenge Tesla. But the company's expansion of factories should help it with that. That figure may still be small when compared to production numbers of traditional automakers, but if you compare it to other EV-specific brands, it's actually quite good. Case in point is the company's recent vehicle production figures. But one thing you can't deny is that the company's stock has been massively successful. Tesla ( TSLA 2.97%) is one of those stocks that's pretty divisive in the investing world.

Tesla shares have been down since CEO Elon Musk won the $44 billion Twitter deal, dropping 12% on April 26. The drop reflects investors' worries, ...

“The Twitter deal brings another X variable into the mix for Musk which will be a concern for investors until they are proven otherwise,” Ives wrote. It also spurred volatility in shares of both Twitter and Tesla. Year-to-date, the stock is down 27%, although it is up slightly in pre-market trading so far today.

More than 125 billion US dollars (£99 billion) was wiped off the stock market value of electric car giant Tesla overnight amid concerns that boss Elon Musk ...

“Could he still walk away? Mr Musk’s 17% shareholding in Tesla accounts for the biggest chunk of his huge 270 billion dollars (£213 billion) personal wealth and are also providing the bulk of the financing for the Twitter acquisition. The Tesla owner has personally pledged to pump in 21 billion dollars (£17 billion) of cash to help finance the deal.

Investors appear to be a bit less concerned about what Elon Musk's purchase of Twitter will mean for the EV company.

Musk is clearly committed to the EV company, and even as he's put time into launching and managing other businesses, Tesla has still grown at a rapid pace. Wedbush analyst Daniel Ives highlighted this issue in an investor note Wednesday, and said that the Twitter transaction "was never ideal" for Tesla investors. After a massive 12% sell-off Tuesday, shares of leading electric vehicle maker Tesla ( TSLA 2.42%) were slightly rebounding Wednesday morning.

Tesla Inc. stock rises nearly 3% on Wednesday, taking some of the sting out of a 12.8% decline on Tuesday that led the EV maker to shed $126 billion in...

“While the Tesla story is not impacted, Musk is the hearts and lungs of the Tesla story and the Twitter saga now unfortunately becomes an overhang for Tesla shares in the near-term,” the analyst said. “Combining this dynamic with the debt taken on as part of the Twitter transition, now a good portion of Musk’s Tesla shares will be spoken for/used as collateral for this deal which is putting near-term pressure on the stock,” the analyst said. The equity commitment “will result in some piece of Musk’s Tesla ownership being sold over the coming year even though a core piece of this financing is likely held as collateral and not actually sold in the transaction,” Ives said.

The EV leader is gearing up for another stock split, and that could trigger another bullish surge among retail investors.

If you have an above-average tolerance for risk, and think that the company will go on to deliver more strong performances with its electric vehicles, battery technologies, and autonomous vehicle software, it could be a worthwhile long-term investment. EVs are an exciting, fast-growing market, but there could be some twists and turns ahead that prompt the market to reassess Tesla's highly growth-dependent valuation. If you combine the performances of GM, Ford, and Volkswagen over the trailing 12 months, the cohort generated $559.37 billion in revenue and net income of $46.16 billion. However, just how much of a premium it deserves is the question that investors will have to weigh. A regulatory filing made by Tesla ( TSLA 0.58%) at the end of March revealed that the electric vehicle (EV) leader plans to carry out another stock split. The EV leader produced 305,407 vehicles in the quarter and delivered 310,048, performance that represented year-over-year jumps of roughly 69% and 68%, respectively.

Tesla is highly traded, and Elon Musk's sale of more than $16 billion worth of stock last year did not appear to push share prices lower.

A lot about Mr. Musk’s plan to buy Twitter is unknown, including how involved he would be. Among those who believe in Tesla’s valuation, which is much higher than rival automakers’ relative to the size of its operations, a lot of the argument depends on Mr. Musk’s stewardship. Even Tesla acknowledges this, stating as a risk in its most recent quarterly report: “We are highly dependent on the services of Elon Musk, techno-king of Tesla and our chief executive officer. Tesla is a component in both the S&P 500 and the Nasdaq composite index. But in the past six months, Tesla shares have twice fallen nearly 12 percent, on Nov. 9 and Jan. 27. Its stock’s drop of 3.7 percent on Tuesday contributed more to the overall index’s decline. Such sales would have to be reported to the Securities and Exchange Commission, but those reports are not instantaneous. He would need to sell nearly 24 million shares at Tuesday’s price to generate $21 billion in cash. Mr. Musk’s financing package for Twitter also includes $12.5 billion in loans using his Tesla shares as collateral. Tesla’s shares have lost about 20 percent of their value since Mr. Musk first revealed that he had bought a big stake in Twitter, kicking off takeover speculation. Even for Mr. Musk, who is worth well north of $200 billion, that’s a lot of cash to come up with. Given Tesla’s enormous market capitalization and its inclusion in major stock indexes, almost everybody with a 401(k) probably owns some Tesla stock.

MORE than $125 billion (£99bn) was wiped off the stock market value of electric car giant Tesla overnight amid concerns that boss Elon Musk may…

“A $1bn (£789 million) break fee might in the end less painful.” Certainly a $21bn (£17bn) cheque is a lot even for him to write,” he said. It is understood that Musk may seek to bring on board other investors to help fund the deal rather than risk destabilising the car maker’s stock, which may also put the wider Twitter deal at risk.