Elon Musk loses $12 billion in a day as he tweets politics

Elon Musk spent Wednesday on Twitter Inc., proclaiming his political flip from Democrat to Republican, bashing ESG, and responding to many users of the social media platform he has agreed to purchase.

Musk has been an outspoken critic of the Biden administration and Democrats’ proposals to tax billionaires and increase tax breaks for union-made electric autos. Tesla’s factories in the United States are not unionized.

Meanwhile, Tesla Inc. fell to its lowest level this year, knocking off $12.3 billion from his fortune, as Twitter continued its slump. Overall, Musk has lost $49 billion since initiating his bid for Twitter last month, due in part to a drop in the broader market and concerns among Tesla investors about Musk’s ability to fund his offer for the social-media behemoth.

Elon Musk has become more vocal since announcing his $44 billion bid for Twitter. Wednesday was no different.

He called ESG a “scam” after Tesla was dropped from an S&P Global index that measures firms’ environmental, social, and governance standards. He also projected that his “political attacks” will “escalate dramatically in coming months.”

The 50-year-old billionaire has stated that if he purchases Twitter, he will lift the ban on former Republican President Donald Trump. He further said that Twitter is biased to the left because it is based in California, a state known for its progressive beliefs.

Tesla’s shares dropped 6.8 percent on Wednesday after Musk revealed his support for Republicans, and the company was removed from a carefully regarded sustainability index.

Elon Musk sold about $8.5 billion in Tesla stock in the three days following the announcement of a deal to buy Twitter.

In filings with the Securities and Exchange Commission, Musk disclosed the sale of 9.6 million shares. The transactions were completed at prices ranging from $822.68 to $999.13 per share.

Tesla CEO Elon Musk announced Thursday night that he has no plans to sell any more of the company’s stock.

According to Kevin Kaiser, a finance professor at the University of Pennsylvania’s Wharton School, Musk’s share sale makes the Twitter deal more likely to occur because it shows Musk wants to come up with the money.