Electric cars in the United States are mixed…’Twitter acquisition’ Tesla plunged 12% vs ‘Saudi 100,000 contract’ Lucid soared 6%
In the US stock market, stock prices of the electric vehicle sector were mixed. Tesla’s stock price soared as Tesla’s rival, Lucid, signed a contract to sell electric vehicles with Saudi Arabia, while Tesla’s stock price soared at the news of CEO Elon Musk’s takeover of Twitter.
On the Nasdaq market on April 26 (local time), Tesla closed at $876.42, down 12.18% from the previous trading day. According to the Wall Street Journal (WSJ), this is the biggest drop since September 2020 in a year and a half. Tesla’s share price decline this week came a day after Musk announced it would acquire Twitter for $440.
Earlier, when it was announced on April 4 (local time) that Musk had acquired a 9.2% stake in Twitter and became the largest shareholder of Twitter, the stock price rose more than 5%. However, as Musk pursued hostile mergers and acquisitions (M&A), Tesla stock fell. Compared to the closing price on the 4th, the current share price is down 23%.
In particular, Tesla’s stock price reacted sensitively to the news that Musk is financing the Twitter acquisition with a loan secured by his Tesla stock. According to Musk’s proposal to finance the acquisition of Twitter, which Musk submitted to the U.S. Securities and Exchange Commission (SEC), out of a total of $46.5 billion (about 58 trillion won, before the final agreement with Twitter), $25.5 billion (about 32 trillion won) will be provided as a loan. there is. Of this, $13 billion will be pledged to Twitter, and $12.5 billion will be pledged as collateral for his Tesla stake.
According to the agreement with a financial institution that promised Musk a loan, he secured Tesla stock worth five times the loan amount as collateral. To borrow $12.5 billion, you must provide $62 billion of Tesla stock as collateral. Here, if Tesla stock falls and the loan exceeds 35% of the collateral value, Musk must respond to a margin call. It is analyzed that these concerns have further pulled Tesla’s stock price, as Musk will have to sell some Tesla stock or provide additional collateral if he receives a request for a margin call.
On the other hand, another electric vehicle company, Lucid, signed a contract to sell electric vehicles with Saudi Arabia, and its share price rose sharply. According to CNBC reports on April 26 (local time), the Saudi Arabian government has decided to purchase 100,000 Lucid electric vehicles over the next 10 years through this contract. During this period, Lucid will deliver a minimum of 50,000 vehicles to Saudi Arabia, with an additional option to purchase up to 50,000 more. Immediately after the news of the contract was announced, the share price of Lucid soared 5.95% in after-hours trading.
Lucid said the vehicle will be delivered to Saudi Arabia starting next year. He said the initial delivery volume will be between 1000 and 2000 units per year in 2023, but will increase to 4000 to 7000 units from 2025. He also announced that he would build an overseas plant to increase production. These include the Saudi Arabia plant construction plan announced in January last year and the Arizona plant construction plan in the United States in March this year. Industry observers predict that Lucid will be able to produce 500,000 electric vehicles per year when the two factories are fully operational.
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