Tesla (NASDAQ:TSLA) is having a bad day. With the US economy in a bear market, high-growth stocks are falling across the board. Like many of its peers, TSLA shares have been in decline since the markets opened. But even strong bearish energy isn’t the only thing weighing on Tesla’s future today. Elon Musk continues his quest to acquire Twitter (NYSE:TWTR), and it doesn’t bode well for Tesla.
TSLA shares spent most of today on a gradual downward trajectory. The shares closed down nearly 9%. Despite rallying yesterday, Tesla still has considerable ground to make up before going back into the green.
Let’s take a look at the market forces that are sinking TSLA stock today.
What’s going on with TSLA stock?
Ever since the US entered bear market territory earlier this week, tech stocks have been swimming against the tide. TSLA shares are down 8% in the past five days. In the meantime, Amazon (NASDAQ:AMZN) Y Apple (NASDAQ:AAPL) are down 5% over the same period. Some pundits may say the US 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 interest rate hike from the Federal Reserve. Since then, rates have been raised 75 basis points, leading to mixed reactions.
Famed investor Cathie Wood recently doubled her TSLA shares. But other investors aren’t as optimistic about the electric vehicle (EV) leader or its peers. At this point, there is no doubt that bears are hovering over high-growth tech stocks.
Twitter Town Hall
Elon Musk has also been causing new problems for Tesla. Earlier today, the CEO hosted a public meeting with Twitter staff. The social media platform has been on a rollercoaster ride since Musk first submitted the takeover bid for him.
The town hall meeting doesn’t seem to have gone well. Axios reports:
“The meeting started 10 minutes late and employees said they were having difficulty hearing Musk, who appeared to be video conferencing on his phone from a hotel room.”
Axios notes that Musk is apparently sticking to his anti-remote work narrative. He also stated that “trust is what makes trust” when asked why employees should trust him. According to Axois’ According to the source, the CEO says he will assess Twitter’s success by determining whether the platform is “advancing civilization and consciousness.”
daily beast reports that Musk avoided questions about possible layoffs.
Twitter’s town hall likely left employees with more questions than answers. But investors in TSLA stock are equally likely to be unhappy, too, especially as the Twitter acquisition poses risks for Tesla. Now that TSLA is being pushed down by broad market forces, investors have even more reason to be nervous.
As of the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.