Elon Musk’s stock portfolio has been constantly changing lately. Last major operation to date, the American billionaire has just liquidated $3.95 billion worth of Tesla shares since the takeover of Twitter, reports CNN.
The reduction of its stake in the pioneering company in terms of electric cars was done in several stages. In total, no less than 19.5 million shares were sold. The purchase of Twitter was formalized on October 27, but the sale of shares did not begin until November 4. Sales were also recorded on Monday and Tuesday, Nov. 7 and 8, according to Securities and Exchange Commission documents.
Financial difficulties at Twitter
For now, we still do not know the purpose of these sales. Would Elon Musk start paying off his debt? Is he preparing for a drop in Twitter revenue? All assumptions are on the table.
The Bluebird’s new owner revealed last week that Twitter had experienced a “massive drop in income“of the order of 4 million dollars per day. In question, the reduction of the investments of the advertisers on the platform against a background of lack of visibility concerning the new policy of the company.
“What we’ve seen recently, since the change to Twitter was announced, is the amount of hate speech that’s increased significantly. We felt there was a risk that our ad would appear next to the wrong messages.“, said Dirk van de Put, boss of Mondelez International, quoted by The Register.
Musk’s management criticized
Before its takeover, Twitter was already loss-making. During the previous quarter, the social network lost no less than $270 million. The company’s balance sheet as of June 30 showed just $2.7 billion in cash. It is this situation that would have led Elon Musk to lay off nearly 3,700 employees of the company. The American billionaire also announced the establishment of a premium service called “Twitter Blue” for $8 per month.
For Dan Ives, technology analyst at Wedbush Securities, quoted by CNN, the days following the takeover of Twitter are a “debacle of epic proportions.” And to add: “The more he [Elon Musk, NDLR] engages in Twitter, the quicksand the case becomes.”