Tesla Inc TSLA shares continue to trade lower Wednesday after CEO Elon Musk made a purchase proposal Twitter Inc TWTR at original selling price of $54.20 per share.
According to a new regulatory filing, Musk intends to proceed with closing the transaction based on the terms of the previous merger agreement, which was signed on March 25.
The deal previously stalled after Musk claimed that the number of bots, or spam accounts, on Twitter was much higher than the company had stated.
Twitter shares rose Tuesday after Musk’s apparent reversal, while Tesla shares took a hit. The same happened when the deal was first announced, as investors feared that the Tesla CEO would have to use his own fortune by selling Tesla stock to close the deal.
Tesla shares closed down more than 12% on the initial announcement. Musk’s apparent reversal caused shares to fall again on Tuesday, and the stock continues to slide.
Related Link: Why Elon Musk Capitulated to Twitter Deal and What Would Be the Hard Part for Him Now: Analyst Shares Thesis as He Raises Target Price
Last month, Twitter shareholders approved Musk’s initial bid to buy the social media company. The acquisition isn’t complete yet, but multiple reports suggest the deal could close as early as Friday.
TSLA Price Action: Tesla has a 52-week high of $414.50 and a 52-week low of $206.85.
According to Benzinga Pro, the stock is down 6.06% at $234.27 at the time of publication.
Photo: courtesy of Tesla.