Tesla Stock Price Has Plunged 28% Since Elon Musk's Twitter Takeover

Tesla's stock prices dropped by more than 20% since its CEO Elon Musk took over the social media platform Twitter in late October.

On Tuesday, Tesla shares closed at $160.95, down more than 4.09% for the day, according to CNBC. Since Oct. 27, Tesla shares have fallen 28% from around $228.

In comparison, other major automakers, such as Ford and Volkswagen saw a slight rise in their share prices since Musk's Twitter takeover. However, Rivian, a U.S.-based electric truck maker, also saw its share prices falling by 27% over the nearly two-month period.

"Not since 2018 has Tesla traded at these levels," Dan Ives, an analyst for wealth management and advisory firm Wedbush, wrote in an email to Yahoo Finance. "On an EV/EBITDA [earnings before interest, taxes, depreciation, and amortization] basis it's the cheapest valuation to date."

The sharp decline in Tesla shares has prompted billionaire Leo Koguan, founder of the IT services firm SHI International, to urge the company board to "perform shock therapy to resuscitate stock price." Koguan is Tesla's largest retail shareholder.

"No longer about fundamental of Tesla but smart and powerful negative poison gazing Tesla. We are shareholders are accidental war casualties," Koguan wrote in a Twitter post. "The board is established to protect SH. The board members are smart, hopefully they will perform shock therapy to resuscitate stock price."

Musk took over Twitter on Oct. 27. Since then, he has already fired several key Twitter executives and laid off at least half of its 7,500-strong workforce — many of whom were notified in companywide emails.

Musk had also decided not to pay rent for its San Francisco headquarters or any of its global offices in an attempt to cut costs. Additionally, Twitter also refused to pay a $197,000 bill for private charter flights made the week of Musk's takeover of the company, The New York Times reported, citing an obtained copy of a lawsuit filed in New Hampshire District Court.

In addition, Musk reversed some of the platform's previous suspensions and reinstated the accounts of former President Donald Trump, rapper Ye, far-right troll Baked Alaska and Rep. Marjorie Taylor Greene, R-Ga.