Tesla shares have been falling ever since Elon Musk’s purchase of Twitter. The Twitter offer linked to Tesla shares and debt has caused the share price of the electric car manufacturer to plummet 40%. The businessman decided to dissociate the companies and no longer finance his Twitter takeover bid.
Musk made it clear in a statement filed with the US Stock Exchange Commission, (SEC), that he would finance the majority of the 44 million dollars (41,000,000,000 euros) he offered to Twitter using money from his own pocket and the pockets of other partners. . The debt-financed part will drop from 21,000 million to 9,000 million. He could not stop Tesla’s fall if he did not link 12,500 to a loan that was secured by the shares of Tesla.
He plans to allow current Twitter shareholders like Jack Dorsey to continue to be partners in the company and to contribute in cash or company shares. Despite the uncertainty surrounding the purchase, particularly after Musk cast doubts on his Twitter account, Musk assures that there are more fake accounts than promised.
According to Forbes’ latest estimates, Elon Musk’s fortune has fallen below the barrier of $200,000 million due to recent declines in both Tesla and Twitter stock markets. Because the businessman is primarily a shareholder in both companies, stock market movements are a major factor in his wealth.
Jack Dorsey (co-founder and ex-CEO of Twitter) has made it clear to the board that he is leaving the social network. This announcement was expected, given that he had previously stated in November that he would be leaving his role as CEO. However, it was not known when he would depart.
Parag Agrawal, the director of Technology at the social network until then, was appointed the new head by the board of directors. The company was left empty-handed after Dorsey’s departure.
Elon Musk’s sale of Twitter has not resulted in Dorsey’s resignation. The purchase was approved by the executive, who stated that Musk was the only option for the future.
