Tesla’s Plunge: Is Elon In Real Danger Of Losing Out On Twitter Buy?

0
Tesla’s Plunge: Is Elon In Real Danger Of Losing Out On Twitter Buy?
ElasticComputeFarm / Pixabay

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.

Play Quizzes 4

Is Elon In Real Danger Of Losing Out On Twitter Buy?

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.

Exodus Point Outperforms As Rates Trading Profits Jump [Exclusive]

Value Bin Default RatesMichael Gelband’s Exodus Point launched in 2018 with $8.5 billion in assets. Expectations were high that the former Millennium Management executive would be able to take the skills he had learned at Izzy Englander’s hedge fund and replicate its performance, after a decade of running its fixed income business. The fund looks to be proving Read More

Get The Full Walter Schloss Series in PDF

Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q1 2022 hedge fund letters, conferences and more

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.

Updated on

No posts to display