Tesla shares plummeted over 2% on Monday afternoon shortly after the company’s CEO, Elon Musk, reached a deal to acquire Twitter.
Shares in the electric vehicle company were down 2.4% to $980.51 during midday trading, underscoring investor concern about the implications of Musk’s $44 billion takeover of Twitter. Tesla investors could be worried that Musk will devote much of his time to Twitter as opposed to Tesla.
Musk is currently the CEO of both Tesla and SpaceX, and is the owner of the transportation startup the Boring Company, as well as the brain computing startup Neuralink.
Tesla shares opened at $978.97 and reached a high of $1,008.62 during the morning but took a nosedive around 3:00 p.m. ET, when Twitter’s board of directors announced that they accepted Musk’s proposal to take the company private.
Tesla shares then recovered to $998.02 at end-of-day trading, representing a nearly 1% dip for the day.
Twitter shares, however, skyrocketed 6% to $51.80 after Musk’s acquisition of Twitter was announced.
Last week, Tesla shares jumped 5% to $1,026.88 after the company reported better-than-expected quarterly earnings. Like other automakers, Tesla has been impacted by worldwide supply chain issues that have caused a shortage in automobile components.