Tesla shares plunge after the announcement of Elon Musk's acquisition of Twitter

Tesla's shares plunged after the announcement that the company's CEO, American billionaire Elon Musk, had reached an agreement to acquire the social networking site Twitter, for about $44 billion, Bloomberg News reported.

Shares of the electric car company closed down 0.7% after Twitter approved Musk’s acquisition of it for $54.20 per share in cash.

Shares were among the top five stocks on the Standard & Poor's 500 Index, which rose by 0.6 percent.

Craig Irwin, an analyst at Roth Capital Partners, said that although the drop in Tesla's shares could reflect investors' concern "a little about focus", the reaction was not justified.

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