On Tuesday, investors sold off shares of Tesla Inc. They were concerned that Elon Musk was more focused on Twitter than on Tesla. Musk is the chief executive of the company and a significant shareholder. As a result, his net worth fell below $200 billion.
It is estimated that Musk’s current net worth is approximately $194.8 billion, and a significant portion of that comes from his roughly 15% ownership of Tesla, which has a market value of $622 billion.
Since he made his bid for Twitter in April, the company’s valuation has decreased by almost half. With this, his personal wealth has been reduced by $70 billion.
Since Musk has sold at least $15 billion worth of stock, investors initially abandoned Tesla due to concerns over his share sales. However, with $13 billion in loans and a total of $33.5 billion in equity investment, he completed the $44 billion deal last month.
Wall Street is now concerned that Musk has overextended himself at a time. Moreover, this is when the creator of electric vehicles is ramping up production and facing more competition.
“It seems like Elon Musk is spending 100% of the time on Twitter, and you know, it might need more capital,” said Jay Hatfield at Infrastructure Capital Management.
Twitter distracted Musk from Tesla
Elon Musk has yet to tweet much about Tesla since he bought Twitter. Despite the fact that this was a strategy that helped him earn followers there. Instead, he has made announcements about social media company intentions via Twitter. The inventions including the $8 monthly fee for blue tick verification.
The owner of SpaceX and the wealthiest man in the world, Elon Musk, has a net worth that is around $40 billion. The capital is more significant than Bernard Arnault, owner of LVMH, who comes in second place.
In midday trading, Tesla shares were down 2% at $193.7 for the third straight session.
Berkshire beats Elon Musk’s company
After a $360 billion decrease, Berkshire Hathaway Inc. has recently replaced Tesla Inc. as the fifth-largest business in the S&P 500 Index.
The period of highly valued tech businesses with aggressive expansion plans is coming to an end.
In addition, the relative robustness of the industrial and consumption cycles is proving to be beneficial for steady and stable enterprises. Rising interest rates are encouraging investors to buy up value firms that deliver reliable cash flows in the here and now.
Elon Musk has been in the headlines for the past few weeks because of his Twitter acquisition. First, the platform’s new owner decided to revamp and bring some changes to Twitter. But now his decisions have bought him some significant controversies.
However, Musk’s friends and former Twitter employee is still favoring the decisions and choices he makes while revamping the platform. But now it is becoming self-evident that things are become drastic for Musk after taking single ownership of Twitter.