Overhang on Tesla from Twitter deal ‘now removed’ - Wedbush
Scott Olson

Wedbush analyst Dan Ives indicated that he believes the âsoap operaâ involving Tesla (NASDAQ:TSLA) CEO and Twitter (NYSE:TWTR) is mercifully over.
âThe $44B price tag for Twitter will go down as one of the most overpaid tech acquisitions in the history of M&A deals on the Street in our opinion,â Ives told clients on Thursday. âWith fair value that we would peg at roughly $25 billion, Musk buying Twitter remains a major head scratcher that ultimately he could not get out of once the Delaware Courts got involved.â
That said, he indicated that he believes the overhang that has loomed over the Austin-based automaker is now largely alleviated.
âWe also believe the overhang on Tesla is now removed with Musk having likely sold
stock this week to fund the rest of the Twitter deal,â Ives concluded.
Major questions remain as to the trajectory of Twitter (TWTR) post-takeover, as will Muskâs proclamations about an âX appâ, motivating a Neutral rating on Twitter. Tesla (TSLA) shares rose 1.22% prior to Thursdayâs market open.
Read more on banks funding the takeover.