Elon Musk has lost over $1 billion as Twitter stock has plummeted.
The Tesla chief executive had purchased a 9.1 stake in the corporate before 14 April, when he made the offer to buy the social media company outright for $54.20 per share. At that time, he owned 73 million shares.
When Mr Musk purchased those shares it was for roughly $36 each – and following his offer they rose to $51.70. Now, nevertheless, they’ve dropped to below his original purchase price, turning his gain right into a $40 million loss.
That is the newest in a series of pricy losses for the multibillionaire. Two weeks ago, Mr Musk’s electric vehicle company had its stock fall almost 16 per cent to $728. Mr Musk had sold roughly $8.5 billion price of shares in Tesla to assist fund the acquisition of Twitter.
Twitter’s stock had been falling since Mr Musk has begun tweeting more provocatively in regards to the deal, suggesting that he believes not less than 20 per cent of the platform’s accounts are bots with the implication that he overpaid for the social media company.
Twitter chief executive Parag Agrawal had sent out a lengthy thread explaining the way it determins the proportion of bots and pretend accounts.
“Unfortunately, we don’t imagine that this specific estimation will be performed externally, given the critical need to make use of each private and non-private information (which we are able to’t share),” Mr Agrawal tweeted.
“Externally, it’s not even possible to know which accounts are counted as mDAUs [monthly daily active users] on any given day. There are LOTS of details which might be very essential underneath this high-level description. We shared an summary of the estimation process with Elon every week ago and sit up for continuing the conversation with him, and all of you.”
In response, Mr Musk tweeted the poop emoji on the Twitter head. He has also claimed that the deal is “temporarily on hold” over this concern, but reports suggest that Twitter is keen for the deal to undergo with the acquisition and that Mr Musk’s allegations – which might have been revealed through the due diligence process, which Mr Musk didn’t do – is not going to stop that.
Mr Musk also recently lost $10bn of his net price in a single day after allegations emerged that he sexually harassed a flight attendant.
The report said that the Tesla chief paid the flight attendant $250,000 to settle a sexual misconduct claim against him. Mr Musk has denied the accusations, calling them “utterly unfaithful” and adding “it never happened”. He told Insider, which broke the news, that the story was a “politically motivated hit piece”, adding that there was “lots more to this story”.
Mr Musk has not responded to The Independent’s multiple requests for comment.