Tesla (TSLA) investors are getting tired of Elon Musk’s Twitter fiasco. And for good reason.
The 10 largest investors in the shares of the electric vehicle maker, including ETF giants Vanguard, Black rock (BLK) and Musk himself have lost nearly $133 billion since Twitter’s board of directors accepted Musk’s acquisition on April 25, according to an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
It cost Musk the position as the richest person in the world. But he’s not the only one feeling the pain.
Tesla shares are falling like a rock
Tesla’s value is down more than 52% since the Twitter buyout was approved on April 25, while the S&P 500 is down just 5.5%. And Tesla stock is down 29% since the deal closed on Oct. 27, far worse than the S&P 500’s 6.6% gains in that time. Shares fell again on Wednesday, falling 3.4% to 155.38.
That shreds an overwhelming amount of wealth for Tesla investors. Tesla’s value is down $339 billion from Twitter deal approval and $206 billion from closing.
Investors worry that Musk is so in love with Twitter that he doesn’t mind Tesla.
Investors who own shares of Tesla, which are down more than 50% this year, are expressing their displeasure. “There is no TSLA CEO today,” tweeted Gary Black, managing partner of the Future Fund, which has lost nearly $18 million on its Tesla stock since April, as first reported by the Wall Street Journal.
It doesn’t just cost Elon Musk
Musk definitely suffers the most from the Tesla implosion. 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 also extend to Main Street as the giant ETFs and mutual funds are the next largest owners. Vanguard, which predicts a recession next year, is the number 2 largest holder of Tesla stock. It owns nearly 7% of the company. And as a result, shareholders are down nearly $23 billion from the close of the Twitter deal.
What will Musk’s infatuation with Twitter ultimately cost Tesla investors?
“This remains the quagmire for both Musk and Tesla investors in what has been a period of pain for Tesla bulls in a general risk-off backdrop with Musk’s gold child stock under great pressure,” Wedbush’s Dan Ives said in a statement. note to customers.
Biggest Tesla losers since Twitter
Losses based on the value of current positions as of April 25, 2022, Twitter sale approval
|Holder||Loss from Twitter deal approval (in billions)||% owned by Tesla|
|State Street Global Advisers||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|