Why Tesla Stock Plunged After Musk's Successful Bid for Twitter
Shares of Tesla (NASDAQ: TSLA) were down 9.2% as of 10:37 a.m. ET on Friday. CEO Elon Musk sold a chunk of Tesla stock after reaching a deal to buy Twitter, pending shareholder approval.
It's not so much the sale but the uncertainty over what happens with Tesla's management in the near term that has investors feeling a little nervous.
Twitter and Musk announced an agreement on April 25, which will hand control of the social media platform to the billionaire's X Holdings entity for $54.20 per share. From April 26 through April 28, Musk sold about 6 million shares of Tesla, worth around $5 billion. Investors presume that Musk will use the proceeds to partly fund the Twitter deal.
Source Fool.com
