Tesla Stocks Crashes After Musk Buys Twitter!

Elon Musk has finally took over the Twitter with a price tag of whooping $44 billion.

How did he execute this?

He used his own money for half the cost and for the rest he had the overpriced Tesla stocks and few bank loans. On paper this was a good decision.

But in reality this may be harder than expected. After the Twitter takeover was announced, Tesla’s price crashed, slipping almost 12% on 26th April. That means in a single day Tesla lost around $125 billion in it’s market cap.

So this leaves me wondering whether this was a good business move? If the general public doesn’t like his purchase. Then how could it affect his other businesses? If the stocks plummet so far will Musk be able to front the money? If not the deal may fall through. He may not get his wish of liberating free speech.

Bezos took this as opportunity to target Elon and his relationship with China.

China is Tesla’s second-biggest source of income and have a huge advantage over him. It’s unclear whether they could manipulate him to their advantage. Or whether they’ll pressure him to pull out from the deal.

With China’s way of thinking, Elon in control of Twitter could work well for them. They have already infiltrated the Western world with Tik Tok. Now they will have another finger in the social media pie.

All we can do is to wait and see if Tesla stocks keep plummeting. Or whether China will use Elon to their advantage.

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