Is Tesla Doomed If Elon Musk Buys Twitter?
Tesla (NASDAQ: TSLA) shares have struggled to stay afloat recently owing to broader negative sentiment swaying the stock market and added pressure from CEO Elon Musk's recent proposal to acquire Twitter (NYSE: TWTR). Musk and the popular social media platform agreed to a deal on April 25 valued at $44 billion.
Following the news, Tesla stock fell more than 10%, indicating a potential sign that shareholders are worried about what Musk's association with Twitter will mean for the electric vehicle (EV) company moving forward. Consequently, the company's share price is down almost 20% in the past month, and the stock now carries a market capitalization of $891 billion.
Already responsible for overseeing Tesla and SpaceX, Musk now intends to lead one of the world's largest social media companies. Should investors be concerned that he has too much on his plate? Although only time will tell, I don't think we need to worry about the future of Tesla. The latest news triggered an antagonistic view of the stock; however, over the long run, the EV maker won't be affected.
Source Fool.com
