Tesla Stock Plunge Wipes Out $114 Billion In Value As Twitter Deal Sparks Fears

Tesla shares collapsed Tuesday as investors continued to digest the implications of Twitter’s acceptance of CEO Elon Musk’s $44 billion bid for the social media giant, tacking onto already-staggering losses spurred by the Federal Reserve's looming interest rate hikes.

Tesla shares fell as much as 11% Tuesday to $890, pushing the stock down more than 28% from its all-time high in November and wiping nearly $25 billion from Musk's fortune and $114 billion from Tesla's market capitalization, which now stands at $920 billion. 

"Tesla shareholders can’t be happy that Musk will have to divert even more attention away from winning the electric-vehicle race," Oanda analyst Edward Moya wrote in emailed comments, echoing concerns from Vital Knowledge Media's Adam Crisafulli, who also attributed the plunge to investor concerns about how Musk will finance his Twitter bid.

In a filing last week, Musk disclosed he's secured $46.5 billion in financing for the Twitter deal, including more than $20 billion in loans from Morgan Stanley and another $21 billion in equity financing, making it very likely he'll need to sell Tesla shares and pledge some as collateral to make the deal work.