Image Source: Twitter
On Tuesday, investors sold off shares of Tesla Inc. out of concern that Elon Musk, the company’s chief executive and major shareholder, was more focused on Twitter than on Tesla. As a result, his net worth fell below $200 billion.
Forbes estimates that Musk’s current net worth is $194.8 billion, with a significant portion of that coming from his approximately 15% investment in 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, and his personal wealth has decreased by $70 billion.
Due to Musk’s share sales, which have totaled at least $15 billion, investors originally deserted Tesla. With $13 billion in loans and a $33.5 billion equity investment, he completed the $44 billion deal last month.
Wall Street is now concerned that Musk has overextended himself at a time 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.
Musk hasn’t tweeted 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, including the $8 monthly fee for blue tick verification.
The owner of SpaceX and the richest man in the world, Elon Musk, has a net worth that is around $40 billion greater than Bernard Arnault, owner of LVMH, who comes in second place.
In midday trading, Tesla shares were down 2% at $193.7, sliding for a third straight session.