June 30, 2022

Dubai Week

Complete Dubai News World

إيلون ماسك

Twitter deceived the world’s richest man .. Musk lost $ 11 billion per hour

Tesla, the world’s richest man, and Elon Musk, CEO of SpaceX, lost $ 10.7 billion in net worth on Friday.

It came after shares of the American billionaire electric car maker fell 6.4% to end the week with a 13.7% decline.

25 billion loss per week

That means the world’s richest man, valued at $ 207.3 billion, lost a total of $ 25.2 billion last week, announcing on his Twitter account that he had stopped acquiring $ 44 billion, leading to 5.7 percent. Increase in Tesla shares.%.

The reason for the loss of Kasturi

According to John Coffey, a law professor at Columbia University, there was an obvious reason for Tesla’s shares’ poor performance on Friday: “The allegation that Musk was exposed to a flight attendant in a Business Insider article late on Thursday did not have an impact.

According to Forbes, the American millionaire did not respond to a request for comment.

He added: “Tesla’s shares have plummeted since Tuesday’s report by Twitter’s board of directors to the New York Times.

In it, the company indicated its desire to “complete the transaction and execute the merger agreement” between the company and Musk. This frustrated the thinking of Tesla shareholders that their CEO might step down from his Twitter acquisition and reduce his distractions (Tesla shares fell 6.8% the next day).

Cowie insists, “Twitter is more likely to close the deal, and Musk will reach a settlement at a lower discount from the original price (which is now very high).

For example, if Musk were to settle for $ 50 a share, he would have to sell his Tesla shares (his only real assets).

See also  Gold is declining as yields in US treasuries increase

This could lead to a fall in stock prices and an early exit by some shareholders looking forward to the sale. ”

Cautious performance of Tesla shareholders

Twitter’s team did not provide further details in its report released on Tuesday, so the performance of Tesla investors mixed with reactions when shares were relatively equal since Thursday, while the social media company’s share rose 2.7% on Friday, while Nasdaq technology weighed down. 0.3% of companies indicate that Twitter’s share price was driven by the potential for a near-complete deal.

Wetbush Dan Yves, a private bank analyst who covered Tesla News, acknowledged that the Twitter deal was a top priority for Tesla shareholders, with shares “falling significantly due to concerns about Twitter funding and Musk selling more Tesla shares.” The deal was announced.

Mask project

According to a Forbes estimate, Tesla’s shares have lost 35% of their value since April 13, the day before Misak announced his plans to acquire Twitter, reducing the CEO’s net worth to $ 66.3 billion.

Musk originally planned to pledge $ 62.5 billion in shares of Tesla to obtain a $ 12.5 billion margin loan to finance part of the deal.

He halved the number of margin funding and Tesla shares after raising $ 7.1 billion in capital liabilities from a group of first-list investors on May 5.

Forbes estimates that despite $ 8 billion in cash, his capital commitment to Twitter team members increased from $ 21 billion to $ 27.3 billion in the same day.

Musk now regrets all of these events because it was difficult to find external investors to finance a company contract he was forced to buy. As the value of Tesla’s shares continues to fall, bankers may be reluctant to repay the additional shares without a pledge from Musk, a margin loan for the amount originally agreed (let alone further lending).

See also  Despite Putin's promise to stick to supplies, oil is rising again

Although Musk is the richest man in the world, nothing has been offered to him in this regard as he has already pledged more than half of his stake in Tesla as a network for other loans before pursuing his Twitter deal.

With the fall of Tesla’s stock, Musk’s funding for the Twitter deal became more and more uncertain. The more uncertainty there is, the less Tesla’s stake will be.

And the Twitter deal is not weighing on Tesla shares these days, according to Dan Yves, who said that “headlines about Elon Musk are the focus of investors.”

Bad news

Unlike Cowie, Yves points out that the fall in stock prices was primarily due to allegations that Musk misbehaved with the flight attendant who was released on Thursday (Musk denied the allegations on Twitter on Thursday night).

Add to this week many bad news, for example, Reuters reported Monday that Tesla’s plans to bring production levels in China to a pre – epidemic level will be delayed.

Standard & Poor’s earlier this month excluded Tesla from its S&P Environmental, Social and Corporate Governance Index, or ESG. Tesla investor Kathy Wood has cut its investment in the company, Bloomberg said Friday.

Good luck with the mask

Not long ago, Musk became the first person to acquire assets of $ 300 billion or more, as Tesla’s market capitalization was twice $ 1 trillion in November and January.

Musk is now valued at $ 207.3 billion, and could fall below the $ 200 billion he had in September, when he surpassed Amazon’s Jeff Bezos to become the world’s richest man for the first time.

See also  Geely Monjaro 2023 Launched in Saudi Arabia .. Specifications and Prices (Video and Photos)

“I’m going to send a giant ‘2’ with a silver medal to Jeff Bezos,” Musk wrote in a short email to Forbes commenting with great confidence.