Elon Musk, founder and CEO of Tesla, SpaceX or Starlink continues with his intention to acquire the social network Twitter. And as an expression of his interest, he has just informed the SEC (Stock Exchange Commission, equivalent in the United States to the Spanish National Securities Market Commission) of the addition of 6,000 million dollars from his personal fortune to the amounts committed in the operation.
Part of the financing for the purchase of Twitter was committed to loans on shares of Tesla
With this contribution Musk prevents some of the financing from being carried out by Tesla. The contribution is produced by having matured some loans called margin Loan, consisting of responding to the loan with the shares owned by the person requesting said loan.
Now, and after the announcement of this increase in equity contributions, the total amount that Musk offers from his personal fortune is 33.5 billion of dollars. The rest, until completing the 44,000 million dollars in which the purchase of Twitter is encrypted, come from loans granted by banks and various institutional investors.
The operation releases Tesla’s commitment to the operation, a strategy that could also affect the value of the electric car company’s shares, so that may have been one more reason for the movement. Thus, although Musk, to a certain extent in the manner of Steve Jobs, continues to forge his own field of distortion of reality and all his actions in one of his companies end up affecting the rest of the companies he directs, he separates Tesla from the direct effects of participate in the purchase of Twitter.
At this point it is worth remembering that after a bullish rally that made Musk the richest man in the world, Tesla accumulates drops that have reached up to 30% of the value of your sharesso it is convenient to break the commitment that would mean that the price of its shares could be affected by a possible negative response from the market to its participation in the purchase of Twitter.
Incidentally, this increase in Musk’s commitment worth 6,000 million dollars also serves to counteract the possible jug of cold water on his intentions caused by the paralysis of the purchase of Twitter that, recently, caused doubts as to whether he really intended to complete the operation. Now it seems clearer that Musk’s interest exists. Or at least it’s 6 billion times more intense.
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