Ilon Musk’s fortune dropped by about $29 billion the day after he announced his purchase of the microblogging network Twitter. This is evidenced by Forbes Real-Time data.
Musk’s net worth dropped 10.83%, from $268 billion to $239.2 billion, as the stock price of electric car maker Tesla fell 12%. The company’s market capitalization fell by about $130 billion overnight. The sharp plunge is attributed to Musk’s recent focus on Twitter, which has caused concern among Tesla shareholders. Investors fear that the entrepreneur will have to pledge or sell his shares in the company in order to get a loan to buy the social network.
Shareholders are concerned that Musk might sell his Tesla stock to pay for the Twitter deal and that his focus might not be enough to run multiple companies. Nevertheless, Elon Musk is still the richest man in the world. Following him on Forbes’ list is Jeff Bezos, the founder and head of Amazon, who is $74 billion behind Musk.
On April 25, Twitter executives announced that Musk would buy the company for $44 billion. According to the SEC, if Musk decides to terminate the agreement, he will have to pay Twitter a $1 billion fine. If Twitter initiates the breakup, Musk will be compensated. The final closing date of the deal is set for October 24, 2022.