Twitter deal is costing Elon Musk, net worth falls below 200 billion dollars

Elon Musk, chief executive of American electric car maker Tesla, is facing difficulties after purchasing micro blogging site Twitter. Due to Musk paying more attention to Twitter, there is a huge selloff in Tesla shares. Tesla’s market capitalization has fallen by nearly half since Musk made the bid for Twitter in April.

Musk’s net worth has dropped to less than $200 billion. According to Forbes, Musk’s net worth is $194.8 billion. His net worth is largely contributed by his approximately 15 percent stake in Tesla. Tesla Its market value is approximately $622 billion. Musk has taken a loan of about $13 billion to buy Twitter. Tesla is facing tough competition from other electric vehicle makers and the company is also under pressure to increase production. Musk has tweeted very little about Tesla since buying Twitter. For the last few days, he has been giving information only about the schemes related to Twitter. Twitter has also announced to charge about $8 per month for blue tick verification.

The net worth of the world’s richest person, Musk, is about $ 40 billion more than that of the second richest person, Bernard Arnault. Tesla’s sales have been affected due to slowdown, supply chain difficulties and increasing raw material costs. Chinese automobile company BYD had sold the highest number of electric vehicles (EV) globally by defeating Tesla in the second quarter of the current financial year. It achieved an annual growth of 266 percent by selling around 3,54,000 EVs. Tesla’s sales during this period were around 2,54,000 units.

Total sales of these vehicles increased by 61 percent on year-on-year basis to 21.8 lakh units in the second quarter. China was on top in this market with 12.4 lakh units. This sales in China has increased by about 92 percent on an annual basis. Europe and America were in second and third place. This is the first time that an automobile company has overtaken Tesla in EV sales. The major reasons for the decline in Tesla sales were semiconductor shortage and the pandemic. However, the second half of this year may be better for the company.

(This news has not been edited by NDTV team. It is published directly from the syndicate feed.)