The stock of the world's richest man's electric car company is suffering as he seeks to purchase a social networking platform.
"Shares of Tesla (TSLA) have plummeted about 20% since Musk first disclosed plans to buy all of Twitter and take it private. That's a key reason why Twitter's stock (TWTR) is now more than 10% below Musk's proposed $54.20 a share purchase price," CNN reported Wednesday. "This seems to suggest investors have doubts about whether Musk will get the deal done at the original price, despite the fact that he recently lined up more than $7 billion in financing from an impressive group of investors that includes mutual fund powerhouse Fidelity, venture capital giant Sequoia and Oracle (ORCL) co-founder Larry Ellison."
Tesla Inc. stock was down over 7% at the time of publication.
"Given the big drop in Tesla shares, will Musk have to lower his offer price to get the deal done if Tesla stock continues its electric slide?" CNN wondered. "Skepticism about the deal's chances is growing."
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On Tuesday, Musk said that banning Donald Trump from Twitter following the Jan. 6 insurrection was "morally wrong and flat out stupid."
CNN also reported on Tesla's problems in China.
"The EV maker sold 1,512 vehicles in mainland China last month, down 98% from March, according to data from the China Passenger Car Association. Tesla's production in the country also slid 81% to 10,757 vehicles in April, compared with 55,462 in March," CNN Business reported. "It's a stark turn for Tesla after a strong start to the year in mainland China. Tesla was the top seller of electric vehicles in the country in March, delivering 65,184 cars from its Shanghai factory."