Tesla Stock Drops 5.4% on News of X Acquisition
NEW YORK, March 31, 2025 – Tesla, Inc. (NASDAQ: TSLA) saw its stock price tumble by 5.41% in early trading today following reports of a potential acquisition of X, the social media platform owned by Elon Musk’s xAI. As of 9:30:00 AM EDT, Tesla shares were trading at $249.28, down $14.27 from the previous close of $263.55.
The decline comes amid speculation that Tesla, already a leader in electric vehicles and renewable energy, might be expanding its reach into the tech and social media space through the acquisition of X. While neither Tesla nor xAI has officially confirmed the deal, market analysts suggest that investor uncertainty about the strategic fit and financial implications of such a move may be driving the sell-off.
Market Reaction and Trading Details
Tesla’s stock opened at $249.17, slightly below its previous close, and fluctuated within a narrow day’s range of $249.00 to $249.70 in the first half-hour of trading. The bid price stood at $247.93 with a size of 500 shares, while the ask was $259.97 with a size of 100 shares, reflecting a cautious market sentiment.
The drop marks a significant shift for Tesla, which has seen its stock soar over the past year, with a 52-week range spanning from a low of $138.80 to a high of $488.54. Today’s decline brings the stock closer to the lower end of its recent trading patterns, raising questions about whether this is a temporary dip or the start of a broader correction.
Speculation Surrounding the X Acquisition
Elon Musk, who serves as CEO of both Tesla and xAI, has long been known for his ambitious ventures and unconventional business strategies. X, originally a social media platform focused on real-time communication, has evolved under Musk's ownership into a hub for AI-driven content moderation and user engagement. Rumors of Tesla acquiring X had fueled debates about how such a deal could align with Tesla’s core mission of advancing sustainable energy and transportation.
Some analysts speculate that integrating X’s AI capabilities could enhance Tesla’s autonomous driving systems or customer engagement platforms. However, others warn that the acquisition could strain Tesla’s financial resources and distract from its primary business objectives, especially as competition in the EV market intensifies.
Broader Market Context
Tesla’s stock movement comes against a backdrop of volatility in the tech sector, with investors closely watching how Musk’s various enterprises—Tesla, SpaceX, xAI, and others—interact. The news of a potential X acquisition adds another layer of complexity to Tesla’s narrative, which has been marked by record highs in 2024 and early 2025, driven by strong sales and optimism about its energy storage division.
As the market digests this development, all eyes will be on Elon Musk and Tesla’s leadership for clarity. A formal announcement, if forthcoming, could either stabilize the stock or deepen the uncertainty, depending on the terms and rationale provided.
For now, Tesla shareholders are left to navigate the turbulence, with the stock’s 5.4% drop serving as a stark reminder of the high stakes tied to Musk’s vision—and the risks of his ever-expanding empire.
