Tesla shares plummeted after Musk offered to purchase Twitter | Elon Musk Hub

Tesla shares plummeted after Musk offered to purchase Twitter

According to analysts, this way Tesla shareholders may have expressed their concern that Twitter could distract Musk from other projects.

If the deal is successful, two problems arise from the point of view of Tesla shareholders. First, Tesla is currently working on the full launch of 2 factories, and Twitter's management could distract Musk from these important matters.

Second, the terms of financing the purchase are unclear. Elon's most liquid assets are his $170 billion worth of TSLA stock, so if he decides to sell some of it in order to buy Twitter, it would have a negative impact on the value of TSLA securities.