Tesla (TSLA) investors are getting tired of Elon Musk’s Twitter fiasco. And for good reason
The 10 biggest investors in the electric vehicle maker’s shares, including ETF giants Vanguard, BlackRock (BLK) and Musk himself, lost nearly $133 billion after Twitter’s board accepted the purchase of Musk 25. Market Intelligence and MarketSmith .
It cost Musk the title of richest person in the world. But he is not alone in feeling the pain.
Tesla stock is dropping like a rock
Tesla is down more than 52% since the Twitter buyout was approved on April 25, while the S&P 500 is down just 5.5%. And Tesla shares are down 29% since the deal closed in October. 27, far worse than the S&P 500’s 6.6% gain during that period. Shares fell 3.4% again on Wednesday to 155.38.
That’s a huge fortune wreck for Tesla investors. Tesla’s value has dropped by $339 billion since the deal was approved by Twitter and by $206 billion since it closed.
Investors fear that Musk is so obsessed with Twitter that he doesn’t care about Tesla.
Investors who own Tesla stock, which has dropped more than 50% this year, are voicing their displeasure. “There is no CEO of TSLA today,” tweeted Gary Black, managing partner of Futures Fund, whose Tesla shares have dropped nearly $18 million since April on Monday, as first reported by the Wall Street Journal.
It doesn’t just cost Elon Musk
Musk is definitely suffering the most from Tesla’s implosion. As the largest shareholder, 14.1% of the company has personally lost $47.9 billion since the Twitter deal closed.
But the losses are spilling over to Main Street as well, as giant ETFs and mutual fund companies are the next biggest holders. Vanguard, which predicts a recession next year, is Tesla’s second-biggest holder. He owns almost 7% of the company. And because of that, its shareholders lost nearly $23 billion after the deal closed on Twitter.
What will Musk’s Twitter obsession cost Tesla investors in the end?
“This remains a morass for Musk and Tesla investors in a period of pain for Tesla bulls against a general risk backdrop with the golden child of Musk stocks under a lot of pressure,” said Wedbush’s Dan Ives , in a note to customers. 🇧🇷
Tesla’s Biggest Twitter Loser
