Tesla (TSLA) Investors are getting tired of Elon Musk’s Twitter fiasco. And for good reason.
The 10 largest investors in the EV maker’s stock, including ETF giants Vanguard, Black rock (BLK), and Musk himself, have lost nearly $133 billion since Twitter’s board agreed to buy Musk on April 25, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and Market Smith.
It cost Musk the position of richest person in the world. But he’s not the only one in pain.
Tesla stock plummets like a rock
Tesla’s stock is down more than 52% since the Twitter acquisition was approved on April 25, while the S&P 500 is down just 5.5%. And Tesla shares are down 29% since the deal closed Oct. 27, far worse than the S&P 500’s 6.6% gain over that period. Shares were down again on Wednesday, 3.4% to 155.38.
This is destroying a staggering amount of wealth for Tesla investors. Tesla’s value has dropped $339 billion since the Twitter deal approved and $206 billion since it closed.
Investors fear Musk is so infatuated with Twitter that he doesn’t care about Tesla.
Investors who own shares of Tesla, now down more than 50% this year, are openly expressing disappointment. “There is no TSLA CEO today,” tweeted Monday Gary Black, managing partner of the Future Fund, which has lost nearly $18 million on its Tesla stock since April, the Wall Street Journal first reported.
It’s not just costing Elon Musk
Musk is certainly suffering the most from the implosion of Tesla. As the largest shareholder with 14.1% of the company, he has personally lost $47.9 billion since the Twitter deal closed.
But the losses are also spreading to Main Street, as giant ETFs and mutual fund companies are the next biggest owners. Vanguard, which predicts a recession next year, is the second largest holder of Tesla stock. He owns almost 7% of the company. And because of that, its shareholders have lost nearly $23 billion since the closing of the Twitter deal.
How much will Musk’s infatuation with Twitter ultimately cost Tesla investors?
“This remains the quagmire for Musk and Tesla’s investors in what has been a period of pain for the Tesla bulls amid an overall risk-off backdrop with Musk’s golden child stocks under intense pressure,” he said. said Wedbush’s Dan Ives in a note to clients.
Tesla’s Biggest Losers from Twitter
Losses based on value of current holdings as of April 25, 2022, Twitter sale approval
|Holder||Loss since Twitter deal approval (in billions)||% owned by Tesla|
|State Street Global Advisors||10.7||3.1|
|Capital research and management||10.5||3.0|
|Geode Capital Management||5.1||1.5|
|T. Rowe Price||5.1||1.4|