Musk loses $70 billion: Tesla stock price hits 2-year low since Twitter purchase

November 9, 2022  10:47

The acquisition of Twitter has negatively affected Tesla's business and Elon Musk's fortune. As soon as the first reports about the acquisition of this social medium appeared, the price of Tesla shares began to fall and today reached a two-year low, and Musk lost $70 billion as a result; his net worth is currently estimated at $194.8 billion.

Investors fear that Musk is now focusing almost all of his attention on Twitter and neglecting his electric car business, Reuters reported. And as the competition in this field increases, neglecting one's own business to this extent can lead to disastrous consequences.

Tesla shares reach 2020 pandemic levels

If in November 2021 one share of Tesla was sold for $400 or more, and this April—for more than $350, now the price of one share has decreased all the way to $190. The year-to-date decline in stock value is estimated at -43.93 percent.

The company's shares were worth about the same in November 2020—at the height of the COVID-19 pandemic.

Musk sells about $4bn worth of Tesla shares

On October 28, Musk bought Twitter for $44 billion. According to Barron's magazine, Musk had to sell $5-10 billion worth of Tesla shares at the end of October to cover the remaining costs related to the purchase of Twitter assets.

Interestingly, Musk did not sell shares in the period leading up to the Twitter acquisition, but between November 4 and 8, he sold 19.5 million Tesla shares he owned—and for a total of $3.95 billion.

According to some experts, however, the price drop in Tesla shares is only partly due to Musk's actions, as 319 million shares of the company changed hands in the last three days, whereas Musk sold only 19.5 million shares—no more than 6% of the stated amount.

Between April and August, Elon Musk sold 17.6 million shares of Tesla he owned—and totaling $15 billion. But since the funding mechanism for the Twitter deal was not made public, it is difficult to judge whether Musk will sell additional Tesla shares to cover the costs associated with Twitter.

Musk currently owns 446 million shares of Tesla—and which is about 12% shares of the company.


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