Elon Musk, the CEO of five businesses, lost his title as the world's richest person last week amid the declining shares of his EV giant money maker Tesla.
On Tuesday, Dec. 20, this downward trend continues after losing $7.7 billion, with Tesla recording its steepest one-day loss since October, according to Bloomberg.
Two-Year Low
Musk had now lost $122.6 billion for the year, surpassing the amount he made in 2021 when his wealth surged to one of the largest in history. According to the Bloomberg Billionaires Index, the tech CEO has a net worth of $147.7 billion, the lowest in more than two years.
Tesla stock and options make up the majority of Musk's wealth. He faces a unique danger from the automaker's declining shares since he increased the leverage on his holdings to pay for his purchase of Twitter in October.
Tesla shareholders are growing increasingly concerned about Musk's fixation with Twitter, which he's trying to turn around after facing controversies here and there.
On Twitter, he published a poll asking users to cast their votes if they want him to remain as the social media platform's CEO. However, 58% of the 17.5 million respondents said he should resign.
Musk responded that he would step down if he found someone willing to take over the bird app.
Recent developments have sparked rumors about Twitter's demise under Musk's leadership, with claims that the social media platform is losing more money due to the numerous changes and operations it is undergoing.
There are also rumors that Twitter's corporate office in San Francisco, California, has also stopped paying its rent because of its losses.
Some also speculate that Chief Twit is entirely committed to Twitter and has neglected Tesla, SpaceX, Neuralink, and other of his businesses in favor of the social media site.
Read also : Elon Musk to Step Down as Twitter CEO, Should He Find a 'Foolish' Replacement-No More Chief Twit?
Musk Sells Tesla Shares
It was also revealed last week that the tech CEO had amassed $3.5 billion by selling as many as 20 million Tesla shares on the open market.
This action is allegedly being taken to support Twitter in its present endeavors, with claims saying that it is losing more money than expected, with Musk shouldering the cost to keep it afloat.
The billionaire did not reveal the reason why he sold the EV company's shares. It is worth noting that Musk sold shares valued at $7 billion in August and another $8.5 billion in April.
Analysts speculate that Musk's move to sell shares may have something to do with the high-interest debt he is now making payments on in connection with the acquisition of Twitter.
According to the terms of the deal, Twitter agreed to take on $13 billion in debt, $3 billion of which was unsecured and has an interest rate of 11.75%.
Musk said at the company's Q3 earnings that Tesla is expected to do a repurchase next year, probably for between $5 billion and $10 billion.
Related Article : Twitter Spaces Now Back after 'Bug Fix,' Elon Musk Suspends Journalists from Alleged 'Doxxing'
