Tesla value falls below magical $1tn milestone as Musk's antics fuel share sell-off

Twitter spat between Bernie Sanders and Elon Musk precedes drop of 4.5% in the electric car manufacturer's shares
Tesla value falls below magical $1tn milestone as Musk's antics fuel share sell-off

Tesla CEO Elon Musk fired back at Bernie Sanders after the US senator tweeted that 'We must demand that the extremely wealthy pay their fair share'. 

Tesla shares have tumbled again, taking the electric car maker's market value below $1 trillion (€.87tn) for the second time in four sessions as investors reacted to CEO Elon Musk's recent stock sales of a combined $6.9bn.

Shares of the company, which lost some $187bn in market value over the past week, were down about 4.5%.

The drop below $995.75 put the company's market value below $1 trillion, a milestone it breached late last month after news of its largest-ever order, from car rental firm Hertz, helped fuel a sharp rally.

The drop comes on the heels of a dispute on Twitter on Sunday between Mr Musk, the world's richest person, and Bernie Sanders after the US senator demanded that the wealthy pay their "fair share" of taxes.

Mr Musk sold 6.36m Tesla shares last week after floating the idea in a Twitter poll and now needs to offload about 10m more to fulfill his pledge to sell 10% of his holdings in the company.

"Tesla shares have been sinking post the sale based on a Twitter poll last week. And Musk's Sunday tweet deriding a senior politician may add pressure on the stock in the coming weeks," said Kunal Sawhney, CEO of equity research firm Kalkine Group.

"By offloading shares worth billions of dollars, Elon Musk is likely to accrue a tax bill of around $15bn."

Reuters

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