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Tesla ( TSLA ) Investors are getting fed up with Elon Musk’s Twitter fiasco. And for good reason.
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The 10 biggest investors in electric-vehicle maker stocks, including ETF giant Vanguard; Blackrock ( BLK ) and Musk himself, have lost nearly $133 billion since Twitter’s board approved Musk’s purchase on April 25, according to Investor Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
It has cost Musk the position of the richest man in the world. But he’s not the only one feeling the pain.
Tesla stock is dropping like a rock.
Tesla’s stock has fallen more than 52% since the Twitter acquisition was approved on April 25, while the S&P 500 is down just 5.5%. And Tesla stock has lost 29% since the close on Oct. 27, far worse than the S&P 500’s 6.6% gain over that period. Shares fell again Wednesday, down 3.4% to 155.38.
This is a jaw-dropping fortune for Tesla investors. Tesla’s value is down $339 billion from the Twitter deal and $206 billion from last.
Investors worry that Musk loves Twitter so much, he doesn’t care about Tesla.
Now, investors who own Tesla stock, which has fallen more than 50% this year, are voicing their displeasure. Gary Black, managing partner of the Future Fund, which has invested nearly $18 million in Tesla stock since April, according to the Wall Street Journal, tweeted Monday that “the CEO of TSLA is gone today.”
It’s not just charging Elon Musk.
Musk is certainly suffering greatly from the Tesla implosion. As the company’s largest shareholder at 14.1%, Twitter has personally lost $47.9 billion since the deal closed.
But the losses are spreading to Main Street as the giant ETF and mutual fund companies are the next big holders. Tesla stock is the No. 2 largest, according to Vanguard, which predicts a recession next year. He owns approximately 7% of the company. And as a result, the shareholders took nearly $23 billion out of the deal that closed on Twitter.
What will Musk’s love for Twitter ultimately cost Tesla investors?
“This has been a pain for Tesla bulls at a time when Musk’s golden boy stock is under intense pressure, with Musk and Tesla investors generally at risk,” Wedbush’s Dan Ives said in a note to clients. .
Tesla’s biggest losers since Twitter
Loss based on current holding price as of April 25, 2022, approval of Twitter sale
| Container | Loss from Twitter deal approval (in billions) | % ownership of Tesla |
|---|---|---|
| Elon Musk | $47.9 | 14.1% |
| Vanguard group | 22.9 | 6.7 |
| Blackrock | 18.5 | 5.4 |
| State Street Global Consultants | 10.7 | 3.1 |
| Capital research and management | 10.5 | 3.0 |
| Geod Capital Management | 5.1 | 1.5 |
| T. Row price | 5.1 | 1.4 |
| Ellison, Lawrence | 4.8 | 1.4 |
| F.M.R | 3.7 | 1.1 |
| Jennison Associates | 3.2 | 0.9 |
Sources: IBD, S&P Global Market Intelligence
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