Elon Musk’s acquisition of Twitter transaction is a lot of noise, but his other company has become a “victim”. Tesla shares have tumbled more than 35% since Musk first announced he was buying Twitter. In the same period, the Nasdaq Composite fell about 18%.
On April 25, 2022, Musk first announced that he had agreed to acquire Twitter. On the day, Tesla closed at $332.67. As a result, by the close on Friday, a full week after Musk became Twitter’s new boss, Tesla’s stock price fell 3.6% to close at $207.47, down 38% from $332.67, and its market value shrunk by about $400 billion.
By comparison, other automakers have seen their share prices fall much less over the same period. For example, shares of General Motors and Ford fell by about 2% and 11%, respectively. Shares of Rivian, an upstart in the electric vehicle industry, fell just over 5%.