Tesla’s market value falls below $1 trillion after Musk tweets

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(Businesshala) – Shares of Tesla Inc fell again on Monday, taking the electric-car maker’s market value below $1 trillion for the second time in four sessions, as investors stunned CEO Elon Musk’s recent $6.9 billion deal. reacted to the joint stock sale.

FILE PHOTO: The logo of car maker Tesla is seen at a dealership in London, Britain May 14, 2021. Businesshala/Matthew Childs/File photo

Shares of the company, which lost about $187 billion in market value last week, fell about 4.5% on Monday morning to $986.

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A drop below $995.75 put the company’s market value below $1 trillion, a milestone it broke late last month following news of its largest order from car rental firm Hertz, leading to a A massive rally got a boost.

The fall comes after a Twitter spat between the world’s richest man Musk and Bernie Sanders on Sunday, after a US senator demanded that the wealthy pay their “fair share” of taxes.

“Tesla shares are sinking following a sell-off based on a Twitter poll last week. And Musk’s Sunday tweet ridiculing a senior politician could put pressure on the stock in the coming weeks,” said Kunal Sawhney, CEO of equity research firm Culkin Group.

“By selling billions of dollars worth of shares, Elon Musk is likely to earn a tax bill of about $15 billion.”

Musk sold 6.36 million shares of Tesla after the idea was brought up in a Twitter poll last week Here And now it needs to offload about 10 million more to fulfill its pledge to sell its 10% stake in the electric-vehicle maker.

chip supply restrictions

oysters on saturday bit.ly/3ChQVIU Asked a Twitter user to “not read too much” comments about PepsiCo CEO Ramon Laguarta’s expectation of the first deliveries of Tesla Semi trucks in the fourth quarter.

“As publicly noted, Tesla chip supply is short term and cell supply constrained long term,” Musk tweeted. “Unless both the constraints are removed, it is not possible to produce additional vehicles.”

Tesla has weathered the pandemic and the global supply-chain crisis better than rivals, posting record revenue for the fifth quarter in a row.

Meanwhile, investor Michael Burry, of “The Big Short” fame, took aim again at Musk, tweeting Here, “@elonmusk borrowed 88.3 million shares, sold all his mansion, moved to Texas, and asking @BernieSanders if he should sell more stock. He doesn’t need the cash. He’s just selling $TSLA wants.”

Reporting by Shruti Shankar and Subrata Patnaik in Bengaluru Additional reporting by Anisha Sarkar in Bengaluru, Saikat Chatterjee in London and Ira Iosbashvili in New York Editing by Anil de Silva and Matthew Lewis

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