Tesla, Elon Musk witness massive drop in valuation after billionaire's Twitter deal

Elon Musk's net worth saw a massive drop after the valuation of his electric car company Tesla plunged 12% in New York trading, Bloomberg reported Wednesday. According to the report, about $126 billion were wiped off Tesla's valuation in a single day as shareholders are spooked after Musk's acquisition of Twitter. Notably, Tesla's share prices have been falling ever since Musk announced to have bought a 9.1% stake in the micro-blogging site earlier this month. 

Elon Musk loses $29 billion in a day

According to the Forbes real-time billionaire list, Musk currently stands as the richest person in the world with a net worth of around $242 billion (subject to change). This is after the Tesla boss lost 10.83% or $29 billion from his net worth in a day because shareholders are concerned that he would sell his Tesla shares to liquidate the $44 billion to purchase Twitter. Musk is followed by Bezos, who is currently worth $163 billion, as the second richest person. The third, fourth, and fifth positions are acquired by Bernard Arnault ($157 billion), Bill Gates ($130 billion), and Indian business tycoon Gautam Adani ($125 billion), respectively.

Twitter buyout deal gets a deadline

Although Twitter is now under Musk's jurisdiction, he will have to close the deal by paying $44 billion of the finalized amount before October 24. The date, however, may be extended for another six months to meet certain closing conditions including, antitrust and foreign investment clearances, the filing stated. If Musk fails to pay the amount before the deadline, both Musk and Twitter will have to pay $1 billion as the termination fee of the deal.

Earlier, Musk announced that he was willing to pay $54.20 (Rs 4,153.88) per share for 100% of the company in an all-cash offer. Meanwhile, Twitter stated that Musk had secured $25.5 billion (roughly Rs. 1,95,440 crore) of debt and margin loan financing and was providing a $21 billion (roughly Rs. 1,60,975 crore) equity commitment.