Here’s the sad news, Elon Musk lost his number 1 spot in Bloomberg’s ranking of the world’s richest people this week, it’s bad news for his fans, I’m sad too.
Tesla’s chief executive sold about 22 million shares of the electric carmaker for $3.58 billion, a US filing showed late Wednesday. The transactions took place between December 12 and December 14.
Tesla shares have plunged 55% this year as investors grapple with Musk’s $44 billion purchase of Twitter Inc, raising concerns about rising interest rates that could make cars more expensive for consumers Is. Can make and China is Tesla’s biggest market after America.
Elon Musk, now eager to drive engagement on the social-media platform he owns, lashed out at a former Twitter executive and tweeted conspiracy theories that alarmed even his most longtime fans.
Elon Musk has been unsuccessfully trying to land a Twitter deal for months. To raise enough cash for the purchase, he sold more than $15 billion in Tesla shares, selling $8.5 billion in April and then more than $6.9 billion in August. He sold another $3.95 billion of his stake after promising to sell in November.
Elon Musk used the large amount of borrowed money that now sits on Twitter’s balance sheet to help finance the acquisition. Twitter’s debt load has increased from $1.7 billion pre-deal to $13 billion, along with other types of bonds that can be converted into stock.
Twitter now faces annual interest payments reaching $1.2 billion that could get even more expensive because interest rates on half of that debt are not locked in and will move with the market. At the risk of stating the obvious, be wary of debt in turbulent macroeconomic conditions, especially during Fed rate hikes, tweeted Elon Musk.
Elon Musk’s recent sale has reduced his stake in the company by about 13%. Elon Musk, who has been Tesla’s CEO since 2008, is still the largest shareholder. His net worth was $160.9 billion, placing him second only to Bernard Arnault of France on the Bloomberg Billionaires Index. This year, his wealth has registered a decline of $ 109.4 billion.