Tesla (NASDAQ:TSLA) is having a bad day. With the U.S. economy in a bear market, high-growth stocks are falling across the board. Like many of its peers, TSLA stock has been in decline since markets opened. But even the strong bearish energy isn’t the only thing weighing on Tesla’s future today. Elon Musk is continuing his quest to acquire Twitter (NYSE:TWTR) — and it isn’t boding well for Tesla.
TSLA stock spent most of today on a gradual downward trajectory. Shares closed down by nearly 9%. Despite rising yesterday, Tesla still has considerable ground to make up before pulling back into the green.
Let’s take a look at the market forces sinking TSLA stock today.
What’s Happening with TSLA Stock?
Since the U.S. slipped into bear market territory earlier this week, tech stocks have been swimming against the current. TSLA stock is down 8% for the past five days. Meanwhile, Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) are both down about 5% for the same period. Some experts may say the U.S. is not in a recession yet, but it’s clear many investors disagree as tech stocks plunge.
A few days ago, tech stocks fell on fears of another Federal Reserve interest rate hike. Since then, rates have been raised 75 basis points, yielding mixed reactions.
Famed investor Cathie Wood recently doubled down on TSLA stock. But other investors aren’t so bullish on the electric vehicle (EV) leader or its peers. Right now, there’s no question that the bears are circling high-growth tech stocks.
Twitter’s Town Hall
Elon Musk has been causing new problems for Tesla, too. Earlier today, the CEO hosted a town hall meeting with Twitter’s staff. The social media platform has been on a rollercoaster ride since Musk first submitted his acquisition offer.
The town hall meeting doesn’t seem to have gone well. Axios reports:
“The meeting started 10 minutes late, and employees said they had a hard time hearing Musk, who appeared to be videoconferencing on his phone from a hotel room.”
Axios notes that Musk is apparently sticking to his anti-remote-work narrative. He also stated “trust is as trust does” when asked why employees should trust him. According to Axois’ source, the CEO claims he will evaluate Twitter’s success by determining if the platform is “advancing civilization and consciousness.”
Daily Beast reports that Musk avoided questions regarding potential layoffs.
The Twitter town hall likely left employees with more questions than answers. But it’s equally likely that TSLA stock investors are unhappy about it as well, especially as the Twitter acquisition poses risks for Tesla. Now that TSLA is being pushed down by broad market forces, investors have even more cause to be nervous.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
