As Tesla Inc (NASDAQ:TSLA) shares collapsed Tuesday as investors continued to digest the implications of Twitter Inc (NYSE:TWTR)’s acceptance of CEO Elon Musk’s $44 billion bid for the social media giant.
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Scott Sheridan, market expert, and CEO of tastyworks comments:
“It’s tough to say if Tesla was down so much yesterday in sympathy with the market or if the market was down in sympathy with Tesla.
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Either way, if this continues, it’ll throw a potential wrench in Elon’s plan to buy Twitter since he needs to sell Tesla stock to cover some of the financing.
I’m a little reluctant to read too much into yesterday’s tape action in Tesla though in light of the broad declines we saw across the board.
If the broader market begins recovering but Tesla doesn’t, then I think you may have a situation where Tesla shareholders are voicing concern over Elon doing too many things at once.
And shareholders may also be worrying that depending on what he does with Twitter, he may turn off potential car buyers. But I’m going to hold off on making any conclusions based on just one day’s price move.”
About tastyworks
tastyworks is an online brokerage platform built specifically for options traders. The up-and-coming online broker is a subsidiary of tastytrade, one of the fastest growing online financial networks in the world. tastyworks was designed by the founders of thinkorswim with sophisticated functionality for complicated options trades and strategies in mind. It has a do-it-yourself approach and provides the technology, education, and support to succeed more easily on your own.
