Buying Twitter worth USD 44 billion turned out to be quite a hassle for Elon Musk, even though he is the richest person in the world. To the extent, this South African-born man had to sell his Tesla shares.
Although Elon Musk's assets are in the thousands of trillions, most of it comes from Tesla and SpaceX shares, and his cash is estimated to be 'only' USD 3 billion. To pay for the purchase of Twitter, he, among other things, borrowed from a bank.
Not only that, data from the US Securities and Exchange Commission reveals that Elon Musk has just sold 9.6 million shares of Tesla for $8.5 billion.
It is almost certain that the sale of these shares is to increase the cash that must be deposited with Twitter. Despite having sold so much, Elon Musk's stake in Tesla is still around 15%.
As quoted by us from the BBC, Tesla's own stock had dropped once Elon Musk was officially going to buy Twitter. Among other things, investors are worried that their energy will be wasted in managing social media bearing the blue bird.
Elon Musk himself is the richest man in the world, with a fortune according to Forbes in the range of USD 250 billion. In addition to Tesla, he also owns about half of the shares of the space vehicle company, SpaceX.
The funding for the Twitter acquisition came from several sources, including loans from Morgan Stanley and other financial institutions that have committed to donate USD 25.5 billion. Musk himself is expected to provide funding of USD 21 billion.
If Musk decides to cancel this deal for some reason, for example if Musk cannot provide funding to complete the transaction, he will have to pay a cancellation fee of USD 1 billion.
The document also states that the deal with Elon Musk will be canceled if it is not finalized by October 24, 2022, at 5:00 p.m. U.S. Pacific time