Tesla share price crashes over 8% - here is why

Tesla Stock Price: Tesla Inc shares tumbled 8.05 per cent on Tuesday i.e. December 20 despite Wall Street closing slightly higher after four sessions of declines. The share closed at $137.80, slightly above the 52-week low of 137.66. The fall in the stock price of Tesla comes as at least three brokerages cut the electric vehicle maker's target price on growing concerns of demand weakness and risk from Chief Executive Elon Musk's Twitter distraction. The scrip had closed at 149.87 in the previous session. 

“The market is really speaking and I think shareholders are speaking, investors are speaking and the stock is speaking. And the stock is saying ‘Elon come back to Tesla, leave Twitter alone’,” Sylvia Jablonski, chief executive officer and chief investment office at Defiance ETFs, was quoted as saying by Reuters.

Twitter has apparently proven to be quite a distraction for Musk. The sharp decline also indicates that investors have lost a little bit of confidence in the fact that Musk is able to sort of juggle all of these balls.

So far this year, Tesl Inc stocks have yielded a negative return of over 65 per cent. 

Meanwhile, Musk has announced that he will step down as chief executive of Twitter after finding a replacement.

"I will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software & servers teams," Musk wrote on Twitter.

This is the first time Musk has mentioned stepping down as chief of the social media platform, after Twitter users voted decisively in a poll for him to step down, which the billionaire launched on Sunday evening.

Musk has himself admitted he had too much on his plate, and said he would look for a Twitter CEO. He said on Sunday, though, that there was no successor and that "no one wants the job who can actually keep Twitter alive."

Click Here For Latest Updates On Stock Market | Zee Business Live

With Reuters Inputs