Tesla and Twitter stock has dropped this week as investors digest the ramifications and probable legal difficulties surrounding Tesla CEO Elon Musk’s $44 billion proposals to acquire the social media site.
Musk’s electric vehicle company has fared the worst of the two, with its shares down nearly 16 percent this week to $728. Twitter’s stock dropped 9.5 percent this week, ending at $45.08 on Thursday. Both stocks have suffered more losses than the S&P 500, which is down 4.7 percent this week.
Investors have had to evaluate legal issues for Musk, as well as the prospect that his acquisition of Twitter could be a distraction from running the world’s most valuable automaker, in addition to the broader market malaise.
According to the Wall Street Journal, US securities regulators are looking into Musk’s late declaration that he had purchased more than 5% of Twitter shares. Musk currently owns more than 9% of the company in San Francisco.