Twitter on April 4.
What’s got investors so upset? Musk’s involvement with Twitter is yet another source of distraction for Tesla, especially as the EV market becomes more competitive. Investors question if Musk will use his Tesla share to help fund the projected $44 billion acquisition.
Twitter’s stock dropped 3.7% to $47.96. That’s a far cry from Musk’s $54.20 offer, indicating that investors aren’t certain the merger will go through.
Musk recently
completed a $8 billion Tesla stock sale, which is thought to be tied to the Twitter transaction. Furthermore, Tesla stated in June 2021 that around half of Musk’s equity in the company was used as security for personal borrowing.
Wider tech meltdown: Investors sold shares in global tech firms on Monday, sending the Nasdaq down more than 4%, as they worried about weaker growth, higher inflation, and rising interest rates.
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Since the Federal Reserve raised interest rates by half a percentage point last week, the tech-heavy benchmark has dropped 10%, with Fed Chair Jerome Powell signalling that the US will keep hiking rates.
Microsoft’s market capitalization is now below $2 trillion as of Monday, for the first time since June 2021, as the stock is down 21% this year. Amazon’s stock has fallen by more than 40% since its high in 2021.
ETtechAfter
losing 3.3% on Monday, Apple came within a whisker of being eclipsed as the world’s largest company by market capitalization by Saudi Aramco. After sliding 14% this year, the iPhone maker ended the day with a market capitalization of $2.4 trillion.
Airbnb was down 12%, while ride-hailing firm Uber fell 11.6%. Uber CEO Dara Khosrowshahi said in a staff memo that the ride-hailing firm
will cut costs and focus on becoming a leaner company.
