After Elon Musk’s decision to take over Twitter, Tesla shares collapsed over 12 per cent wiping out nearly $25 billion from Musk’s fortune as Tesla’s market capitalisation fell by $126 billion.
Musk had announced he had secured the Twitter deal for a mega $44 billion after ensuring loans and equity financing as the market speculated Musk may have to sell more Tesla shares in order to make the deal work.
Musk owns 21 per cent of Tesla. Meanwhile, US stocks fell steeply as the Dow Jones Industrial Average plunged 600 points declining 1.8 per cent.
Microsoft and Google-parent Alphabet reported losses and Twitter’s stock fell 3.9 per cent even as Musk announced the takeover hours earlier.