Tesla stock has more than Twitter weighing on it
BNN Bloomberg
The Twitter overhang on Tesla shares is turning out to be among the least of investors’ problems.
Elon Musk’s decision to pursue a takeover of Twitter Inc. contributed to the plunge in Tesla’s stock over the past couple months. Yet even if the billionaire, who plans to address Twitter employees Thursday, decides to walk away from the deal, the electric-vehicle maker’s shares face enough headwinds that they may not recover that lost value.
Blame it on rapidly worsening investor sentiment, with US stocks entering a bear market because of soaring inflation and higher interest rates that threaten to trigger a recession. Technology and growth companies -- whose valuations reflect expectations for big future profits -- have seen the worst of the rout, and Tesla fits that description to a tee.
