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Elon Musk’s net worth fell below $200 billion on Tuesday as investors dumped Tesla Inc shares over fears that the chief executive and largest shareholder of the world’s most valuable electric vehicle manufacturer has become more involved with Twitter.
Musk now has a net worth of $197.4 billion, according to Forbesmuch of which comes from its nearly 15 percent stake in Tesla, which has a market value of $622 billion.
Investors initially fled Tesla over concerns over the stock sale by Musk, which has divested at least $15 billion worth of shares. He closed the $44 billion deal last month with $13 billion in loans and a $33.5 billion equity commitment.
Now Wall Street fears Musk has stretched itself too thin at a time when the EV maker is ramping up production and facing increasing competition.
“Looks like Elon Musk spends 100% of the time on Twitter and you know, it might need more capital,” said Jay Hatfield of Infrastructure Capital Management.
Since buying Twitter, Musk has tweeted very few about Tesla, a practice that helped him get to grips with the platform. Instead, he’s used Twitter to announce plans for the social media company, such as the $8-a-month subscription for blue check verification.
Elon Musk’s net worth fell below $200 billion on Tuesday as investors dumped Tesla Inc shares over fears that the top executive and largest shareholder of the world’s most valuable electric vehicle manufacturer is becoming more involved with Twitter.
Musk now has a net worth of $197.4 billion, according to Forbes, much of which comes from his nearly 15 percent stake in Tesla, which has a market value of $622 billion.
Investors initially fled Tesla over concerns over the stock sale by Musk, which has divested at least $15 billion worth of shares. He closed the $44 billion deal last month with $13 billion in loans and a $33.5 billion pledge in equity
Musk says it’s Tesla’s third-largest stock dump since buying the social media giant CNBC. This year, he sold more than $8 billion worth of stock in April and about $7 billion in August.
The net worth of the world’s richest person, who also owns rocket company SpaceX, is about $40 billion more than the second-richest person, LVMH owner Bernard Arnault.
Tesla shares fell 2 percent to $193.7 in afternoon trading, falling for a third straight session.
Musk pledged to provide $46.5 billion in equity and debt financing for the acquisition, covering the $44 billion price tag and closing costs. Banks, including Morgan Stanley and Bank of America Corp., have pledged to provide $13 billion in debt financing.
The billionaire had tried to walk away from the deal in May, claiming that Twitter underestimated the number of bot and spam accounts on the platform. This led to a series of lawsuits between the two parties.
It is Musk’s third-largest stock dump from Tesla since purchasing the social media giant, according to CNBC. This year, he sold over $8 billion worth of stock in April and about $7 billion in August
The net worth of the world’s richest person, who also owns rocket company SpaceX, is about $40 billion more than the second-richest person, LVMH owner Bernard Arnault
The billionaire had tried to walk away from the deal in May, claiming that Twitter underestimated the number of bot and spam accounts on the platform. This led to a series of lawsuits between the two parties
Tesla and Twitter did not immediately respond to requests for comment.
Musk has dealt with several controversies since he became the “Chief Twit” as he put it.
Twitter updated its app on Apple’s App Store on Saturday to charge $8 for coveted blue checks to boost revenue.
Benefits of the verification service include “half the ads,” the ability to post longer videos to Twitter, and priority ranking for quality content, according to Twitter.
But earlier on Sunday, the New York Times reported that Twitter is delaying the rollout of verification checks for subscribers to its new service until after Tuesday’s midterm elections.
In a sign of more confusion following the Musk acquisition, Twitter is now reaching out to dozens of employees who have lost their jobs and asking them to return, Bloomberg News reported Sunday.
Some of those asked to return have been accidentally fired. Others were fired before management realized their work and experience may be needed to build the new features Musk envisioned, the report said, citing people familiar with the moves.