"Though he said he remained committed to buying Twitter, Musk may be tempted to throw in the towel given the losses he's incurring on paper with regard to his
Tesla equity ownership.
Shares of Tesla are down about 24% over the last month. "
Lol.
"
Musk's reasoning for putting a transaction on hold may be similar: he might want Twitter to lower its sale price. Twitter shares fell more than 8% on Friday and are down about 23% from Musk's agreed-upon purchase price of $54.20 per share. Part of the dip is related to an overall slump in technology stocks this month. The Nasdaq has fallen another 11% since the market close on April 25, the
day Twitter accepted Musk's offer.
"This is probably a negotiation tactic on behalf of Elon," Toni Sacconaghi, Bernstein senior research analyst, said Friday on
CNBC's "Squawk Box." "The market has come down a lot. He's probably using the guise of true active users as a negotiation ploy."
Musk may feel some pressure or obligation to other potential investors in Twitter to lower the price, even if the world's wealthiest person is more price agnostic.
Musk
is in talks with outside investors for both equity and preferred financing to lessen his personal stake in Twitter. If he can get a lower price for the social media company, the returns could be higher for outside investors
if and when Twitter returns to public ownership or is resold.
"
- I cant even about this part. What the actual fuck?