In this photo illustration, Twitter account of Elon Musk is seen on a smartphone screen and Twitter logo in the background.
Pavlo Gonchar | Lightrocket | Getty Images
The stock tumbled 6% on Monday to $38.25, falling below the $39.31 closing price on April 1, the last trading session before Musk revealed his minority ownership in Twitter. Investors have been dumping the stock on concern that Musk is going to abandon his agreement in late April to purchase Twitter for $44 billion, or $54.20 a share.
While the stock as already on the decline early last week, the selloff accelerated after Musk tweeted on Friday that the deal is on hold until he finds out more details about fake accounts and how widespread they are on the platform. He later wrote that he’s “still committed to acquisition,” which prompted Twitter Chairman Bret Taylor to respond, “We are too.”
Musk, the billionaire CEO of Tesla and SpaceX, raised further alarm as he continued to tweet over the weekend about problems with Twitter’s algorithm and other “potential bugs in the code.”
On Thursday, Twitter announced it was freezing hiring, rescinding offers and cutting costs. Two executives also left the company, including head of consumer product Kayvon Beykpour, who said CEO Parag Agarwal asked him to leave.
Agrawal said Friday that he still expects the sale to Musk to go through, but that he’s prepared to continue “leading and operating Twitter” in case it doesn’t.
With the continued slide in the stock, Twitter is now valued at a little over $29 billion, or roughly $15 billion below Musk’s agreed upon purchase price.