Tesla’s stock fell 11.4% on Tuesday. At the end of the day, a share was worth less than 110 euros, the lowest figure since 2020. Compared to the beginning of last month, the value of the share has even halved. According to experts, this is due to the acquisition of Twitter by Tesla CEO Elon Musk.
The richest person in the world bought the social media company this fall. The takeover itself did not go well. But since Twitter is under Musk’s leadership, things are pretty chaotic.
For example, the company reversed recent decisions and the billionaire let Twitter followers determine that he should step down as CEO. Musk has promised to leave as soon as a suitable successor is found.
Investors fear Twitter escapades shorten Musk’s time to lead Tesla. Another factor is that there are reports that the automaker plans to produce fewer cars in China.
Tesla’s CEO himself attributes the price loss to interest rate hikes by the US Federal Reserve. This allows Americans to earn higher interest on their savings, making them want to invest less in stocks.
