Elon Musk’s net worth has dropped by $65 billion since he announced he wanted to Buy Twitter
Elon Musk, the CEO of Tesla, first announced a desire to buy the social networking site Twitter more than two months ago. His net worth, which is mostly based on Tesla stock, has decreased by $65 billion since then. The fall was caused by a variety of external variables in addition to the Twitter contract. Tesla stock was trading at $998.02 per share on April 25, the day he announced his intention to acquire Twitter Inc. It currently trades for $752.29 per share, a notable decrease of almost 24 percent from April. Losses suffered by Tesla were more than typical due to recent significant swings in the stock market. The S&P 500, on the other hand, dropped 9.2% during that time span, while the Dow Jones Industrial Average dropped 7.9%.
According to Bloomberg, the CEO’s $340 billion net worth visible reached its pinnacle in November of last year. It went on to explain how his net worth dropped to $197.1 billion in June, a loss of 42%. His electric vehicle company has been dealing with a number of issues for some time, and these issues are directly related to Musk’s fortune. Elon Musk announced on Friday, July 8 that he intends to withdraw from the $44 billion acquisition of Twitter. He reportedly referred to the problem with spam and bot accounts on the social media website. In addition, he claimed that the business had violated “several sections” of their contract in a serious way.
Several financial experts predicted that the financial losses Tesla would suffer would make it more challenging for the Twitter transaction to obtain funding. This occurred as the CEO of Tesla committed billions of dollars worth of his stock in the electric vehicle company as security for this transaction. It is unclear, though, whether Musk’s request to cancel the acquisition proposal had anything to do with the financing of the transaction. Twitter has not yet responded to any requests for comment on the matter.
Along with the acquisition agreement, a number of other reasons contributed to the decline in Musk’s net worth during the past few months. A flight attendant on a flight to London was allegedly subjected to sexual harassment by Musk, according to reports from the past several months. This caused his net worth to decline dramatically, by $10 billion. The millionaire, who does not employ flight attendants, refuted the accusations.