- Litigator Richard Signorelli made a tweet about the plummeting Tesla (NASDAQ:TSLA) shares.
- Since the announcement of purchasing Twitter (NYSE:TWTR), Tesla stocks dropped about 20%.
- Elon Musk’s plan to buy Twitter is partly dependent on how his Tesla investment is doing.
With the ongoing investigation by the Security and Exchange Commission (SEC) regarding Elon Musk’s late disclosure of his significant purchase of Twitter stocks, another buzz is going on Twitter as Litigator Richard Signorelli made a tweet about plummeting Tesla shares.
Tesla share price down a whopping 38% YTD, 6% today alone. This will impact Musk’s dream of purchasing Twitter.— Richard Signorelli (@richsignorelli) May 11, 2022
Since Elon Musk, CEO of Tesla, announced plans to buy Twitter for $44 billion, Tesla stocks dropped about 20%. This has reportedly affected Musk’s plan as he is using Tesla stocks to make the purchase. Musk secured $25.5 billion in debt financing to fund the purchase of Twitter, with $12.5 billion coming from loans against his Tesla stock. He also used $21 billion in equity.
Elon Musk’s bold plan to buy Twitter is partly dependent on how his Tesla investment is doing. In other words, if Tesla stock prices are going down, a lot of questions need to be asked regarding Musk’s new plans.
It may be unwise to bet against the richest person in the world, yet with the information of Tesla stock going down by over 8.25%, some would beg to differ. Notably, Palmer Report stated, “Elon Musk’s net worth and ability to finance a Twitter buyout are plummeting accordingly.”
But even if the acquisition is completed, the amount of time Musk would spend handling the social media giant might be concerning for Tesla investors. This deal would also add to the growing list of companies Musk owns.
Notably, Tesla Inc. stock has gone down over 8.25% at the time of publication. And with Tesla’s sliding stock price, Elon Musk’s Twitter deal becomes uncertain.