A few days after the costly purchase of Twitter, Elon Musk has divested himself of shares in his company Tesla. Thus, the dazzling tech billionaire sold share packages worth four billion US dollars.
Financial injection for Elon Musk after the purchase of Twitter
At the end of October, it was clear that Elon Musk would henceforth hold the chief executive post at Twitter. The road to the top job was not only rocky for Musk, but also expensive. He paid a whopping 44 billion U.S. dollars for the economically ailing short message service. Economic experts were and are certain that the purchase of the social network is likely to be a real bust for Musk, not only in terms of image, but also economically. This becomes clear not least from the fact that the Tesla boss has already initiated a brute austerity course on his first days as the new Twitter boss. So he laid off many employees and plans to significantly slim down the server infrastructure.
To ensure that the reigning richest man in the world can afford all this, he has now had to part with blocks of shares in Tesla, the electric car maker that is doing well. These are said to have a total value of just under 4 billion US dollars. That Musk has parted with the shares, published the SEC. The Tesla boss himself has not commented further on the reasons for his sale. However, one can certainly assume that there is not only a temporal, but also a causal connection between Twitter purchase and share sale. After all, it is commonly known that Tesla shares make up the bulk of Elon Musk’s fortune.
Buying Twitter only on “credit”
It will only become clear in a few weeks whether Elon Musk has really done himself a favor by buying Twitter. However, it is already extremely questionable whether the short message service has any future at all in view of the many users leaving. The alternative Mastodon is already becoming increasingly popular. It is clear that even Elon Musk, as the richest person on earth, could not simply finance the short message service out of his coffee money. Rather, it is an open secret that the Tesla boss had to take out several loans with a total sum of 13 billion US dollars. In order to be able to repay these, payments of one billion U.S. dollars are expected to be made annually for the dazzling tech billionaire. Since, according to Musk, Twitter makes a total loss of four million US dollars every day, he will probably not be able to service the loans from income with the social network for the time being.