- The stock price of Tesla Inc (NASDAQ: TSLA) increased by over 7% pre-market today. This is why.
The stock price of Tesla Inc (NASDAQ: TSLA) increased by over 7% pre-market today. Investors are responding positively to Tesla CEO Elon Musk writing a tweet that the $44 billion deal to buy Twitter is being put temporarily on hold.
Tesla investors have been concerned about Musk’s involvement in Twitter following the acquisition as it would take attention away from the electric carmaker. And Musk would have to sell a large position in Tesla to fund the deal as well.
Musk is waiting on data about the proportion of fake accounts on the platform. Twitter’s stock price fell over 10% pre-market.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” wrote Musk in a tweet.
Musk also tweeted a story from Reuters from a couple of weeks ago, which had cited the fake account numbers. And Twitter said that those numbers were an estimate and the actual number could be higher.
As part of Musk’s acquisition offer, he waived due diligence to incentivize the company to accept his best and final offer.
However, Musk said that he is still committed to the acquisition. Analysts are speculating whether this tactic is being used by Musk to renegotiate the deal as part of a strategy to lower the price. Musk agreed to pay a $1 billion breakup fee if the deal falls through.
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