Tesla Inc TSLA shares continue to trade lower Wednesday after CEO Elon Musk made a proposal to buy Twitter Inc TWTR for the original deal price of $54.20 per share.
According to a new regulatory filing, Musk intends to proceed with the closing of the transaction based on terms in the previous merger agreement, which was put in place on April 25.
The deal previously stalled after Musk claimed that the number of bots or spam accounts on Twitter was much higher than the company stated.
Twitter shares spiked on Musk's apparent reversal Tuesday, while Tesla shares took a hit. The same thing happened when the deal was first announced, as investors feared that the Tesla CEO would have to leverage his own wealth by selling Tesla stock in order to complete the deal.
Tesla shares closed down more than 12% on the initial announcement. Musk's apparent reversal sent shares lower again Tuesday and the stock continues to slide.
Last month, Twitter shareholders approved Musk’s original bid to purchase the social media company. The takeover has not been finalized, but several reports indicate that the deal could be completed as soon as Friday.
TSLA Price Action: Tesla has a 52-week high of $414.50 and a 52-week low of $206.85.
The stock was down 6.06% at $234.27 at time of publication, according to Benzinga Pro.
Photo: courtesy of Tesla.
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