London Daily

Focus on the big picture.
Saturday, Jul 05, 2025

Tesla shares sink amid concerns about Elon Musk's proposed takeover of Twitter

Tesla shares sink amid concerns about Elon Musk's proposed takeover of Twitter

Elon Musk's offer to buy Twitter has yet to be approved by shareholders but investors in his car-maker Tesla are already concerned.

Tesla shares sank 12.2% overnight, wiping $126bn off the company's value amid investor concern that chief executive Elon Musk might sell his shares to fund equity for his $44bn buyout of Twitter.

The drop in Tesla shares would equate to a $21bn drop in the value of Mr Musk's stake in the car-maker - the same as the $21bn in cash he has promised to put towards the Twitter deal.

OANDA senior market analyst Ed Moya warned: "If Tesla's share price continues to remain in freefall that will jeopardise his financing."

Analysts also said investors are worried that Mr Musk, who also runs SpaceX, tunnel digging firm The Boring Company, and computer-brain interface company Neuralink, will be distracted by the social media company and less interested in running Tesla.

Edward Jones senior equity analyst Jeff Windau said: "He's going to be spending more time with another venture.

"There's a potential limit on the amount of bandwidth that you can apply to each of these companies."

Twitter shares also fall


Twitter's shares were also down on Tuesday - falling 3.9% to close at $49.68.

Mr Musk agreed to buy the company on Monday for $54.20 per share in cash.

The gap between his offer and Twitter's actual share price reflects investor concerns that the decline in Tesla shares - which provide the bulk of Mr Musk's fortune - could lead him to have second thoughts about buying Twitter.

Amazon founder Jeff Bezos has also asked whether Mr Musk's deal to buy Twitter will give China "a bit of leverage" over the platform, as Tesla has a big plant in Shanghai.

Free speech concerns


Earlier on Tuesday, Mr Musk responded to concerns that his vow to turn Twitter into a haven for free speech could see an increase in the hate and disinformation the site has sometimes struggled to deal with in the past.

He tweeted on Tuesday night: "The extreme antibody reaction from those who fear free speech says it all.

"By 'free speech', I simply mean that which matches the law.

"I am against censorship that goes far beyond the law.

"If people want less free speech, they will ask government to pass laws to that effect.

"Therefore, going beyond the law is contrary to the will of the people."

Mr Musk uses his own Twitter account to post about technology and trade, occasionally answering questions from his 85 million followers.

But he has also posted jokes about women's breasts, compared Canada's prime minister to Hitler, and accused a rescue diver of being a "pedo" in the past.

The diver had criticised Mr Musk's proposal to use a submarine in the rescue of a group of boys trapped in a Thai cave. Mr Musk later won a defamation suit brought by the diver, saying he never intended "pedo" to be interpreted as "paedophile".

Newsletter

Related Articles

0:00
0:00
Close
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
×