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Tuesday, November 29, 2022

Tesla boss Elon Musk loses $29B net worth over Twitter acquisition

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Tesla’s valuation was reduced by $126 billion, while CEO Elon Musk’s net worth was reduced by 10.83 percent, or $29 billion, in the day following his Twitter acquisition.

Tesla’s valuation was reduced by $126 billion, while CEO Elon Musk’s net worth was reduced by 10.83 percent, or $29 billion, in the day following his Twitter acquisition.

Elon Musk’s net worth plummeted after the valuation of his electric car firm, Tesla, fell 13% in New York trade on Wednesday. Tesla’s worth was slashed by $126 billion in a single day as shareholders reacted negatively to Musk’s acquisition of Twitter. Notably, Tesla’s stock has been sliding since Musk stated earlier this month that he had purchased a 9.1 percent stake in the microblogging site.

Musk is the world’s richest individual, according to the Forbes real-time billionaire list, with a net worth of approximately $242 billion (subject to change). This comes after the Tesla CEO lost 10.83 percent of his net value, or $29 billion, in a single day because shareholders are fearful that he may sell his Tesla shares to liquidate the $44 billion needed to purchase Twitter. Musk is followed as the richest individual by Jeff Bezos, who is currently worth $163 billion. Bernard Arnault ($157 billion), Bill Gates ($130 billion), and Indian business mogul Gautam Adani ($125 billion) hold the third, fourth, and fifth positions, respectively.

Although Twitter is now under Musk’s control, he must complete the transaction by paying $44 billion of the completed price by October 24.

According to the petition, the deadline could be extended for another six months if certain closing criteria, such as antitrust and foreign investment clearances, are met. If Musk fails to pay the money by the deadline, both Musk and Twitter would be required to pay a $1 billion termination charge.

Musk had stated that he was willing to pay $54.20 (Rs 4,153.88) per share in an all-cash offer for 100 percent of the company. Meanwhile, Musk announced on Twitter that he has acquired $25.5 billion (approximately Rs. 1,95,440 crore) in debt and margin loan funding, as well as a $21 billion (about Rs. 1,60,975 crore) equity commitment.

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