As Tesla shares fluctuated on Tuesday, Elon Musk, the new owner of Twitter and CEO of Tesla, saw his net worth fall below $200 billion. Investors sold shares of Tesla Inc. over fears that Musk, who took control last month, was too focused on Twitter.
First published November 9, 2022, 1:45 p.m. IST
The fact that Elon Musk, the world’s richest man and the new owner of Twitter, seems so preoccupied with his latest acquisition has Tesla investors worried. The billionaire is no longer a member of the $200 billion club after his net worth fell below that amount. He was the only member.
Investors sold their Tesla shares over fears that the company’s chief executive and largest shareholder, who also happens to be its largest shareholder, would focus more on Twitter than anything else. Musk is chairman and CEO of Tesla Inc. and SpaceX.
Forbes estimates his current net worth at $197.4 billion, a significant portion of which comes from his roughly 15% stake in Tesla, which has a market value of $622 billion. Since Musk’s initial Twitter offering in April, the company has lost about half of its market value and its net worth has shrunk by $70 billion, according to Reuters. According to SEC filings on Tuesday, Tesla CEO Musk also sold more than $4 billion worth of the company’s stock. This comes more than a week after it completed the $44 billion purchase of Twitter.
U.S. Securities and Exchange Commission filings revealed Musk sold more than 19 million shares worth more than $3.9 billion, after using Tesla shares to pay a large part of its Twitter acquisition.
The 51-year-old billionaire who is the world’s richest finalized the $44 billion deal late last month with a commitment of $33.5 billion in equity and $13 billion in loans. Musk hasn’t tweeted much about Tesla since buying Twitter, despite it being a strategy that helped him gain followers there. He announced firm social media intentions on Twitter, such as the $8 monthly subscription fee for blue tick verification.
Last updated Nov 9, 2022, 1:45 PM IST