Tesla CEO Elon Musk offered to buy the social- media platform Twitter on Thursday, sending shares of the car maker lower.
Investors might be worried about distraction for Musk as Tesla (ticker: TSLA) ramps up production at new plants, but there are other potential concerns as well.
Twitter (TWTR) stock rose early in the day, but was down shortly after noon, falling 0.3% to $45.72, and dropping further away from Musk’s $54.20 offering price—a number that hints a Musk’s fondness for marijuana memes. Tesla (TSLA) stock was down more than 3%.
The move in Twitter stock added about $1 billion in market value earlier in the day. Now the value is down a little. The move in Tesla stock, which is roughly 25 times more valuable, takes away about $37 billion in value. Combined, the companies are worth less after the bid.
The initial move in Twitter means that investors think it is likely that Twitter’s board will reject Musk’s bid. Musk, for his part, said this was his best offer in his communications with Twitter leadership.
Still, Twitter investors are probably happy with Musk, even if they are nervous Thursday. Twitter stock has risen about 16% since Musk disclosed his stake in the social-media platform. Tesla investors have little to celebrate. The stock is down almost 9%, while the S&P 500 and Nasdaq Composite are off about 3% and 6%, respectively.
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