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  • Bill Gates Could Have Surpassed Elon Musk as Richest Person with $1.2 Trillion in Microsoft Stock

    Bill Gates Could Have Surpassed Elon Musk as Richest Person with $1.2 Trillion in Microsoft Stock

    Elon Musk is making headlines with a staggering net worth of $409 billion, as reported by Forbes. Meanwhile, Melinda French Gates, co-founder of the Gates Foundation and former wife of Bill Gates, is right behind Musk, projected to become the world’s third-richest individual with a net worth of $300 billion.

    A Glimpse Into Microsoft’s Roots

    Take a step back in time to 1986, when Microsoft went public. Bill Gates owned 11.2 million shares—almost 49% of the company—valued at approximately $200 million back then. Fast forward to today: had he retained all those shares through various stock splits, his and Melinda’s holdings would balloon to an impressive 3.2 billion shares, constituting a 43% stake worth an estimated $1.4 trillion.

    The Fortune of Giving

    In addition to the astonishing value of their stake, the couple could have accrued around $100 billion in after-tax dividends over the years, positioning Bill firmly among the wealthiest, with only 18 billionaires surpassing him globally, according to Forbes.

    The Philanthropic Legacy

    However, rather than hoarding his wealth, Gates has been on a journey of giving, gradually selling and donating his shares over the years. Today, he holds only 0.9% of Microsoft, valued at $28 billion, which constitutes about a quarter of his net worth. Melinda possesses 380,000 shares worth around $170 million, a fraction of her wealth.

    Since its establishment in 2000, the Gates Foundation has received a remarkable $60.2 billion in donations from the couple, making them the second-largest philanthropists in the U.S., following Warren Buffett.

    Looking Forward

    In a bold commitment made in May, Gates pledged to donate an astonishing 99% of his more than $100 billion fortune over the next two decades to further bolster charitable initiatives through the Gates Foundation. Meanwhile, Melinda is no slouch either; she launched her own initiative, Pivotal Philanthropies, in 2022 and announced a $1 billion commitment over the next three years specifically to advocate for women’s and girls’ rights. “We all have power,” she stated in a March interview with Elle. “But there are barriers in society that often keep women from using our full power. Our job is to help remove those barriers.”

    Questions & Answers

    What is Elon Musk’s current estimated net worth?
    Musk is valued at approximately $409 billion according to Forbes.

    How much have Bill and Melinda Gates donated over the years?
    The couple has together donated around $60.2 billion since establishing the Gates Foundation in 2000.

    What initiative has Melinda Gates launched?
    Melinda founded Pivotal Philanthropies in 2022, pledging $1 billion over three years to support women’s and girls’ rights.

  • Elon Musk Loses Nearly $34 Billion in One Day, Marking a Major Wealth Decline

    Elon Musk Loses Nearly $34 Billion in One Day, Marking a Major Wealth Decline

    Billionaire Elon Musk experienced a staggering loss of $33.9 billion in net worth on Thursday, making headlines as one of his most significant one-day drops. This sharp decline comes amidst a very public spat with U.S. President Donald Trump, underscoring the intertwined nature of high-stakes business and politics.

    Record-Breaking Decline

    This incident marks the second-largest single-day drop recorded on the Bloomberg Billionaires Index, which tracks the wealth of the world’s 500 richest individuals. Only Musk’s own dramatic $50 billion plunge in November 2021 surpasses this recent loss. The clash began when Musk criticized Trump’s signature initiative, known as the “Big, Beautiful Bill.” Tensions escalated further when Trump suggested scrapping government contracts linked to Musk’s enterprises, which could jeopardize Tesla’s and SpaceX’s revenues.

    Going toe-to-toe with Trump isn’t just a headline grabber; it could spell trouble for Musk as he navigates various regulatory waters. Notably, Tesla’s ambitious plans to launch self-driving vehicles that operate without steering wheels or pedals hinge on the approval of the U.S. Department of Transportation, the body that oversees vehicle safety standards. Compounding the situation, the Department is also investigating Tesla’s “Full-Self Driving” software following a fatal incident.

    Market Reaction

    As tensions escalated, the markets reacted swiftly. Traders dumped Tesla stocks in heavy trading driven by fears of the broader implications for Musk’s business interests. By the end of the day, Tesla shares took a drop of 14%, erasing a staggering $150 billion from its market capitalization.

    Despite this setback, Musk still retains his title as the world’s wealthiest person, with an impressive estimated net worth of $334.5 billion. It’s worth noting that Musk had previously faced a $50 billion loss in 2021, triggered by a Twitter poll in which he asked followers if he should sell 10% of his Tesla shares, leading to a 16% dip in stock value.

    To sum up, Musk’s wealth may fluctuate like the stock market, but it seems he has mastered the art of making headlines.

    Questions & Answers

    What prompted Elon Musk’s recent financial drop?
    Musk’s loss was triggered by his public feud with President Trump, which included criticism of Trump’s initiatives and concerns over potential government contract cancellations related to Musk’s companies.

    How significant is this loss compared to Musk’s past financial fluctuations?
    This loss of $33.9 billion is the second largest reported drop in the Bloomberg Billionaires Index, only outranked by Musk’s own $50 billion dip in November 2021.

    Is Elon Musk still the richest person in the world after this decline?
    Yes, despite the substantial drop in his net worth, Musk remains the wealthiest individual globally, with an estimated net worth of $334.5 billion.

  • Musk claims to have saved Twitter from bankruptcy and red ink

    Musk claims to have saved Twitter from bankruptcy and red ink

    Still one of the richest men in the world, Twitter CEO Elon Musk is now claiming that his $44 billion purchase of Twitter was a timely one as it saved the social media company from bankruptcy. Replying to a tweet from The Wall Street Journal, Musk wrote, “Last 3 months were extremely tough, as had to save Twitter from bankruptcy while fulfilling essential Tesla & SpaceX duties. I wouldn’t wish that pain on anyone. Twitter still has challenges but is now trending to breakeven if we keep at it. Public support is much appreciated!”
    Whether this is just a self-serving missive designed to pump up his accomplishments at Twitter or a legitimate fact isn’t clear. But the multi-billionaire might be feeling his oats after a jury in California found him “not liable” for losses that Tesla stockholders suffered after he disseminated a tweet saying that he was considering taking Tesla private at $420 a share and had “funding secured.”

    In reality, funding was not secured. The tweet was originally posted in 2018 and sent Tesla stock up 11% to $387.46 before crashing to $263.24 a month later when it became obvious that the funding was not secured.

    Since buying Twitter, things have gone anything but smoothly for Musk. He changed his mind several times about his plan to sell verification check marks on the platform and even mentioned that filing for bankruptcy was an option for Twitter that he was considering. However, Musk said in a subsequent tweet that Twitter’s daily user count and user minutes are “still strong.”
    Despite the talk of bankruptcy, Twitter was able to make the first interest payment on the $12.5 billion of debt that Musk borrowed to complete the purchase of Twitter. Being able to make the payment on time probably gave Musk the confidence to tweet his claim. Personally, though, Musk has been going through some tough times. Last year, he became the first person to have the dubious honor of losing $200 billion in wealth during a single year. Over the past year, Tesla’s shares have declined by 37% accounting for most of the evaporation of his wealth.
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  • Musk suggests that he wants to “go to war” against Apple, starts lobbing “tweet grenades”

    Musk suggests that he wants to “go to war” against Apple, starts lobbing “tweet grenades”

    These days you have to wonder just exactly what is going through the mind of multi-billionaire Elon Musk. After spending $44 billion to buy Twitter, Musk is acting like someone who never made a major decision in his life. He says one thing, reverses direction in a day and reverts back to his original thought a few days later. Can Twitter board members trust him to pick which flavor of ice cream cone to buy at Baskin Robbins? After all, the ice cream purveyor offers 31 flavors.
    Now, Elon is focusing (best as he can) on Apple. Reuters reports that Musk has disseminated several tweets in which he accuses the tech giant of trying to block Twitter from the App Store and said in a tweet that “Apple has mostly stopped advertising on Twitter. Do they hate free speech in America?” If true, Apple would be one name from a list of advertisers that have left the platform since the Musk era began for Twitter.
    He also tagged Apple’s CEO in a tweet that asked, “What’s going on here @tim_cook?” Ad metrics firm Pathmatics shows that Apple spent $131,600 on Twitter ads between November 10th and the 16th. That was down 40% from the $220,800 that Apple spent on Twitter ads between October 16th and October 22nd. That was the week before Musk closed on his Twitter purchase.

    According to a Twitter internal document, Apple was the top advertiser on Twitter during the first quarter of this year having spent $48 million which accounted for 4% of Twitter’s revenue during the three months.

    Musk also railed against the so-called “Apple Tax,” which is the 15% to 30% cut of in-app transactions that Apple collects from developers for using its in-app payment platform. But in what can only be called an unhinged tweet, Musk writes “Did you know Apple puts a secret 30% tax on everything you buy through their App Store?” At this point, especially after the current legal battle with Epic Games, we would hardly call this a secret tax. Nor would we call this tweet a “spoiler alert” as Musk writes.

    In a meme that the executive posted on Twitter and then removed, Musk suggests that he will “go to war” with Apple. Of course, some politicians used Elon’s ranting to complain about the App Store which has been under attack by lawmakers who see it as a monopoly since iOS does not allow sideloading. That is the use of third-party app stores to download apps on a device. Google allows this on Android, but Apple says that it bans sideloading to protect users from installing malware.

    Rep. Ken Buck (R-Colo.), who was one of the lawmakers seeking to pass antitrust legislation against large tech companies like Apple and Google, said, “This is why we need to end the App Store duopoly before the end of this year. No one should have this kind of market power.”
    White House press secretary Karine Jean-Pierre noted that the White House was following the situation and in a statement, it was clear that the Biden administration is focusing on another, more troubling aspect of Musk’s acquisition of Twitter. ” She stated that “We have always been very clear that when it comes to social media platforms, it is their responsibility to make sure that when it comes to misinformation, when it comes to the hate that we’re seeing, that they take action.”
    Since Elon purchased Twitter, many users have complained about a proliferation of hate speech that apparently is now being tolerated on the platform. Such activity could get Twitter banned from the App Store and Google Play Store. According to a previous tweet from Musk, such action would lead him to develop an alternative phone to compete with iOS and Android handsets.
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  • Musk hints that a Tesla phone could be made to punish Apple and Google

    Musk hints that a Tesla phone could be made to punish Apple and Google

    You might wonder how Elon Musk got where he is today based on his uneven performance as Twitter’s new owner. His confusing and illogical changes to the verification checkmarks and his inability to make a decision and stick to it without changing his mind a few times does not inspire confidence in the guy as someone who can run a company like Twitter.
    And when former T-Mobile president and CEO John Legere said that he would be interested in working his magic on Twitter (albeit at a superstar executive salary of course), Musk flat-out rejected him without even hearing him out. Considering what Legere did for T-Mobile, taking it from its position as last among the four major wireless providers to second, the guy should get at least a personal meeting. After all, he does have a stunning track record and helped T-Mobile become the most innovative company in the industry.
    The latest news involving Musk and Twitter is that the multi-billionaire has posted a tweet in which he says that should Apple and Google bounce Twitter from their respective app storefronts, Musk will make what he calls an “alternative phone.”
    Let’s run through the whole thing. A conservative commentator Liz Wheeler tweeted, “If Apple & Google boot Twitter from their app stores, @elonmusk should produce his own smartphone. Half the country would happily ditch the biased, snooping iPhone & Android. The man builds rockets to Mars, a silly little smartphone should be easy, right?” Elon responded by writing, “I certainly hope it does not come to that, but, yes, if there is no other choice, I will make an alternative phone.”

    This reminds us of another billionaire who thought that building a competitive smartphone might be right up his alley. Jeff Bezos and Amazon released the Fire Phone in June 2014. To put it mildly, this phone was a flop, as reportedly only 26,000 units were sold.

    But we digress. Right now there are no signs that Apple or Google is considering the removal of Twitter from the App Store and Google Play Store, respectively. But you never know when something Musk does will go afoul of App Store and Play Store rules. If Google were to banish Twitter from the Android app storefront, Twitter could always end up in a third-party app store like Amazon’s where Android users could sideload it.
    Sideloading an app on Android means downloading it from an app store other than the Play Store. Losing the App Store wouldn’t even be a blow even if sideloading is not an option on iOS. That’s because without an Android or iOS app, Twitter still would be accessible through the mobile browser on iPhone and Android handsets; in other words, the lack of a native iOS and/or Android app would not spell the end for Twitter.

    We’d imagine that if a Tesla phone is developed, Musk would create a mobile/wireless business unit for Tesla. But Elon is going to have to be careful how he approaches such a project. Keep in mind that his holdings in Tesla stock have cratered by 54% so far this year. Tesla stockholders might not take too kindly to Elon using Tesla’s cash and name to prop up Twitter which is one of Musk’s personal holdings.

    Again, this is all conjecture at this point, especially since Twitter remains a listing in good standing in the App Store and the Play Store. Unless development plans for an alternative phone have already started, the process of building a new smartphone using a brand-new platform will take several years. So hopefully Mr. Musk doesn’t expect to snap his fingers and see a new phone instantly become an iOS and Android competitor.
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  • Musk sells Tesla shares worth $3.95 bln days after Twitter takeover

    Musk sells Tesla shares worth $3.95 bln days after Twitter takeover

    Tesla Inc Chief Executive Officer Elon Musk has sold $3.95 billion worth of shares in the electric vehicle maker, according to U.S. regulatory filings, days after he completed his purchase of Twitter Inc for $44 billion.

    Musk, whose net worth dropped below $200 billion after investors dumped Tesla stock, unloaded 19.5 million shares between Friday and Tuesday, filings published by the U.S. Securities and Exchange Commission showed.

    The latest share sale leaves Musk with a stake of roughly 14% in Tesla, according to a Reuters calculation.

    The purpose of the sale was not disclosed.

    The latest sale dump comes as analysts had widely expected Musk to sell additional Tesla shares to finance the Twitter deal.

    Musk, the world’s richest man, had asserted in April he was done selling Tesla stock. Still, he went on to sell another $6.9 billion worth Tesla shares in August and said the sale was conducted to pay for the social media platform.

    Musk, the world’s richest man, had about $20 billion in cash after selling a part of his stake in Tesla, including the sales made last year. This would have required him to raise an additional $2 billion to $3 billion to finance the takeover, according to a Reuters calculation.

    Tesla has lost nearly half its market value and Musk’s net worth slumped by $70 billion ever since he bid for Twitter in April.

    Twitter and Tesla did not immediately respond to Reuters’ requests for comment.

    Musk took over Twitter last month and has engaged in drastic measures including sacking half the staff and a plan to charge for blue check verification marks.

    The billionaire pledged to provide $46.5 billion in equity and debt financing for the acquisition, which covered the $44 billion price tag and the closing costs. Banks, including Morgan Stanley and Bank of America Corp, committed to provide $13 billion in debt financing.

    Musk’s $33.5 billion equity commitment included his 9.6% Twitter stake, which is worth $4 billion, and the $7.1 billion he had secured from equity investors, including Oracle Corp co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal.

    Musk had tried to walk away from the deal in May, alleging that Twitter understated the number of bot and spam accounts on the platform. This led to a series of lawsuits between the two parties.

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  • Tesla Raises Full Self Driving Software Price To $12,000 In U.S., Musk Says

    Tesla Raises Full Self Driving Software Price To $12,000 In U.S., Musk Says

    Tesla Inc Chief Executive Officer Elon Musk tweeted on Friday that the electric carmaker will raise the U.S. price of its advanced driver assistant software dubbed “Full Self Driving” to $12,000 on Jan. 17.

    The 20% price rise comes less than two years since Tesla raised Full Self-Driving (FSD) prices to $10,000 from $8,000 in 2020.

    “Tesla FSD price rising to $12k on Jan 17. Just in the US.” Musk tweeted.

    Musk also added that the monthly subscription price will rise when FSD goes to wide release.

    “FSD price will rise as we get closer to FSD production code release,” he tweeted.

    Tesla has been expanding the release of a test version of its upgraded FSD software, a system of driving-assistance features – like automatically changing lanes and making turns, but the features do not make the vehicles autonomous.

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  • Musk Says He Has Secured $46.5 Billion In Funding For Twitter Bid

    Musk Says He Has Secured $46.5 Billion In Funding For Twitter Bid

    Elon Musk on Thursday said he has lined up $46.5 billion in debt and equity financing to buy Twitter Inc and is considering taking his offer directly to shareholders, a filing with U.S. regulators showed.

    Musk himself has committed to put up $33.5 billion, which will include $21 billion of equity and $12.5 billion of margin loans against some of his Tesla Inc shares to finance the transaction. He is chief executive officer of electric vehicle maker Tesla.

    Musk, the world’s richest person according to a tally by Forbes, on April 14 presented a “best and final” cash offer of $43 billion to Twitter’s board of directors, saying the social media company needs to be taken private to grow and become a platform for free speech.

    But Twitter failed to respond to his offer and adopted a “poison pill” to thwart him. Musk also is considering a tender offer to buy all company stock from shareholders but has not decided whether to do so, according to the filing on Thursday.

    Musk, Twitter’s second-largest shareholder with a 9.1% stake, has said he could make big changes at the micro-blogging company, where he has a following of more than 80 million users.

    Shares of Twitter rose less than 1% on news of the funding, indicating that the market is still skeptical about the deal.

    Shares of Tesla climbed more than 3% and the value of Musk’s 172.6 million Tesla shares rose by over $5 billion on Thursday following a strong quarterly report. On Wednesday, he qualified for compensation in the form of stock options now worth about $24 billion after Tesla hit profit and revenue performance targets.

    It is unclear whether Musk would sell shares in Tesla to cover the $21 billion equity financing. Musk “may sell, dispose of or transfer” unpledged Tesla stocks at any time, according to a margin loan commitment letter.

    Banks, including Morgan Stanley, have agreed to provide another $13 billion in debt secured against Twitter itself, according to the filing.

    A spokesperson for Twitter acknowledged receipt of Musk’s proposal.

    “As previously announced and communicated to Mr. Musk directly, the board is committed to conducting a careful, comprehensive and deliberate review to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders,” the Twitter representative said in a statement.

    Ryan Jacob, chief investment officer at Jacob Asset Management, which holds Twitter shares, said Musk’s latest filing would push Twitter’s board to respond.

    “They had to consider the seriousness of the offer, and this filing may do that,” he said. “It’s going to be hard for them to ignore it.”

    Josh White, assistant professor of finance at Vanderbilt University and a former financial economist for the Securities and Exchange Commission, said the funding would likely “put pressure on Twitter’s board to either find a White Knight, which is unlikely, or negotiate with Musk to obtain a higher value and remove the poison pill.”

    The offer from Musk has drawn private equity interest in participating in a deal for Twitter, Reuters reported this week, citing people familiar with the matter.

    Apollo Global Management Inc is considering ways it can provide financing to any deal and is open to working with Musk or any other bidder, while Thoma Bravo has informed Twitter that it is exploring the possibility of putting together a bid.

    The New York Post said on Thursday that Thoma Bravo was in talks with Musk for a joint deal. Thoma Bravo did not respond to a request for comment.

    Musk has made a number of announcements on the platform, including some that have landed him in hot water with U.S. regulators.

    In 2018, Musk tweeted that he had “funding secured” to take Tesla private for $420 per share – a move that led to millions of dollars in fines and him being forced to step down as chairman of the car company to resolve claims from the U.S. securities regulator that he defrauded investors.

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  • Musk bids $41 billion in cash to buy 100% of Twitter

    Musk bids $41 billion in cash to buy 100% of Twitter

    Just three days ago, when Elon Musk ended up not joining Twitter’s board even with the 9.1% stake in the company that he amassed, one analyst suggested that this was a tactical move on Musk’s part. As a board member, he would have been forced to keep his stake capped at no higher than 14.9% of the social media outfit but if he was not on the board, Musk was free to buy all of Twitter.
    As the richest man in the world with a net worth said to be as high as $273 billion, Musk could buy Twitter without having to finance the transaction via a loan. And sure enough, this morning the Tesla CEO announced that he is offering to buy the company for $41 billion or $54.20 a share (that price includes a ‘420’ reference to marijuana). That is a 38% premium over Twitter’s closing stock price the day before his stake in the company was revealed.
    Musk famously smoked pot while appearing on a Joe Rogan podcast. He is also known for making jokes about cannabis during business discussions, so it is not surprising that he would include a reference to weed in his bid for Twitter.
    “Twitter has extraordinary potential. I will unlock it,” the multi-billionaire said. Musk told the Twitter board that this is his last and final offer and that if it is rejected, he would reconsider his investment in the company.
    In a letter to Twitter Chairman Bret Taylor, Musk wrote, “Since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”
    Twitter has some options. It could try to fend off Musk by putting itself up for sale and try to find a higher bidder. It could reject Musk’s offer which would probably lead to a proxy fight in which shareholders get to vote on the deal. Twitter could also use what is known as a ‘scorched earth’ defense and take action to make the company a less attractive investment for Musk once he buys enough shares to put him over a certain threshold of ownership.
    Reuters says that Wall Street’s lackluster reaction to the offer implies that Musk has a 29% chance to close on the transaction. Tesla shares were also impacted today dropping 2% on the theory that Musk will have to sell some of his holdings in the company in order to pay for the Twitter bid.
    The Tesla CEO considers himself to be a free-speech absolutist and has often criticized Twitter for its policies. He has over 81 million followers which ranks him as one of the most popular figures on the platform.
    This morning, former President Donald Trump, who was banned from Twitter, Instagram, and Facebook following the January 6th, 2021 insurrection at the U.S. Capitol, said that he will not return to Twitter if the latter is purchased by Musk. During his four years in the White House, Trump used Twitter to make policy announcements.
    The New York Post quotes Trump as saying, “Twitter’s become very boring. They’ve gotten rid of a lot of good voices on Twitter, a lot of their conservative voices. It used to be a war on Twitter, but it was a very interesting war…Mentally, we had some pretty good fights. We would go after the progressives, who I call the un-progressives. We’d be fighting back and forth and it was great stuff.
    Trump added that “friends of mine” have complained that it’s (Twitter) not the same.”
    As of the start of this year, 76.9 million people use Twitter in the United States while nearly 59 million in Japan use the platform.
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  • Musk Promises ‘Dedicated Robotaxi’ With Futuristic Look From Tesla

    Musk Promises ‘Dedicated Robotaxi’ With Futuristic Look From Tesla

    Electric carmaker Tesla will make a “dedicated” self-driving taxi that will “look futuristic,” Chief Executive Elon Musk said on Thursday, without giving a timeframe.

    The 50-year-old billionaire, wearing a black cowboy hat and sunglasses, made the comments at the opening of Tesla’s $1.1 billion factory in Texas, which is home to its new headquarters.

    “Massive scale. Full self-driving. There’s going to be a dedicated robotaxi,” Musk told a large crowd at the factory.

    Musk has several times missed his targets of full autonomy. In 2019, he said robotaxis with no human drivers would be available in some U.S. markets in 2020.

    In January he said he would be “shocked” if Tesla did not achieve full self-driving that is safer than that of humans this year.

    Tesla will expand its “Full Self-Driving” beta software to all North American FSD subscribers this year, he said on Thursday.

    Tesla now sells the advanced driver assistance systems for $12,000, with a promise of more features. It says the software does not make its vehicles autonomous, and requires driver supervision.

    The beta version, launched in late 2020, aims to enable cars to navigate city streets better. By January, it had been installed in nearly 60,000 vehicles in the United States.

    Musk said Tesla had started deliveries of Texas-made Model Y electric sport utility vehicles, with a goal of producing half a million a year at the Texas factory, which he said would be the biggest car factory in the United States.

    He gave no details of such Model Ys, but they are likely to be lower-priced versions to better take on cheaper competitors.

    Tesla will start production next year of its Cybertruck as well as a humanoid robot, Optimus, Musk said.

    The firm’s new giga factories in Texas and Berlin, which will make vehicles and its own battery cells, face challenges of ramping up production with new processes

    Musk said Tesla was simplifying car making by making a car using three major parts.

    Despite record deliveries in the first quarter, a recent COVID-19 spike in China has forced Tesla to suspend production at its Shanghai factory for several days.

    Thursday’s event comes after Musk surprised the market this week by revealing he had bought a stake of 9% in Twitter and will join the board of the social media network.

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  • US Regulator Keeps Eyes on Musk

    US Regulator Keeps Eyes on Musk

    The US regulators are investigating Elon Musk and his brother Kimbal in connection to insider trading.

    The Securities and Exchange Commission (SEC) is enquiring whether Tesla CEO Elon Musk told his brother Kimbal in advance about a Twitter poll, which caused the carmaker’s shares to fall, according to the Wall Street Journal.

    Tesla shares fell immediately after its CEO asked the public in a Twitter poll in November last year whether he should divest a chunk of his shares to pay taxes.

    Kimbal sold 88,500 Tesla shares valued at $108 million a day before the online poll was announced, leaving him with 511,240 shares after the sale, the report says.

    In an email sent to the Financial Times Elon Musk denied passing information that could have influenced Tesla’s stock price to Kimbal.

    The idea that I would care about whether my brother might sell shares for a few million dollars less when my Twitter poll caused my own share sale to be over a billion dollars less is utterly absurd, Musk said.

    In an apparent reference to the SEC’s Steven Buchholz, Musk added the investigation was simply more evidence of Stevie grinding his very tiny axe yet again.

    Musk’s lawyers have recently accused the SEC of mounting a harassment campaign against him.

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  • Tesla Countersues JP Morgan, Claims Bank Sought ‘Windfall’ After Musk Tweet

    Tesla Countersues JP Morgan, Claims Bank Sought ‘Windfall’ After Musk Tweet

    Tesla Inc on Monday fought back against JPMorgan Chase & Co over a disputed bond contract, countersuing the bank for seeking a “windfall” following Elon Musk’s notorious 2018 tweet that he might take his electric car company private.

    In a filing in Manhattan federal court, Tesla accused JPMorgan of “bad faith and avarice” for demanding $162.2 million after the bank had unilaterally changed the terms of warrants it received when Tesla sold convertible bonds in 2014.

    “JP Morgan pressed its exorbitant demand as an act of retaliation against Tesla both for it having passed over JPMorgan in major business deals and out of senior JPMorgan executives’ animus toward Mr. Musk,” Tesla said.

    By changing the terms of the warrants, JPMorgan “dealt itself a pure windfall” after receiving a “multibillion-dollar payout” from Tesla’s soaring share price, Tesla added.

    Musk is Tesla’s chief executive, and according to Forbes, is the world’s richest person.

    JPMorgan spokesman Brian Marchiony said in an email: “There is no merit to their claim. This comes down to fulfilling contractual obligations.”

    The countersuit escalates the battle between the largest U.S. bank and world’s most valuable car company, which have done little business with each other since the disputed contract.

    Warrants give holders the right to buy company stock at a set “strike” price and date.

    In its Nov. 15 lawsuit, JPMorgan said the Tesla warrants let it lower the strike price to counteract any economic impact from “significant corporate transactions” involving that company.

    JPMorgan said Musk’s Aug. 7, 2018 tweet that he might take Tesla private and had “funding secured,” followed by his reversing course 17 days later, was such a transaction because it made Tesla’s share price more volatile.

    The bank accused Tesla of defaulting because it failed to hand over shares or cash when the warrants expired in June and July 2021, by which time Tesla’s share price had risen about 10-fold.

    Musk’s tweets resulted in a U.S. Securities and Exchange Commission civil lawsuit. It ended with Musk giving up Tesla’s chairmanship, and he and Tesla each being fined $20 million.

    Tesla’s lawsuit seeks unspecified damages.

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  • Musk Sells Nearly $7 Billion Worth Of Tesla Shares This Week

    Musk Sells Nearly $7 Billion Worth Of Tesla Shares This Week

    Tesla CEO Elon Musk offloaded a combined $6.9 billion worth of shares in the electric car company this week, taking advantage of a meteoric rally that vaulted the firm’s value to over $1 trillion. The billionaire sold 1.2 million shares held by his trust for more than $1.2 billion on Friday, the latest in a flurry of his stock transactions, according to U.S. security filing released later in the day.

    The world’s richest person and Tesla’s top shareholder last Saturday tweeted that he would sell 10% of his shares if users of the social media platform approved the move. The 10% would be about 17 million shares at the time of his tweet.

    He has sold 6.36 million shares this week – around 37% of 17 million. He now needs to offload about 10 million more shares to fulfill his pledge to sell 10% of his holdings.

    Shares of Tesla Inc closed lower on Friday, down 2.8% at $1,033.42, snapping an 11-week winning streak. The shares are up more than 46% this year following a sharp rally in October.

    The stock sales, which marked the first time that Musk cashed out on a stake of that size since the company was founded in 2003, were massive by capital market standards, eclipsing the initial public offerings of most companies.

    By getting Twitter users to green-light the move, he has blunted potential criticism of cashing out at a time when Tesla’s valuation has become frothy and shares are at record highs.

    Tesla shares fell 15.4% this week and lost some $187 billion in market value, more than the combined market capitalizations of Ford Motor Co and General Motors Co.

    Despite the week’s losses, Tesla is still the most valuable automaker in the world. Recent strong gains in the stock have underscored demand for shares of electric vehicle (EV) makers.

    After the blockbuster market debut of Rivian Automotive Inc on Wednesday, the two most valuable U.S. automakers are EV companies.

    In a veiled jab at the Irvine, California-based rival, Musk tweeted on Thursday: “There have been hundreds of automotive startups, both electric & combustion, but Tesla is (the) only American carmaker to reach high volume production & positive cash flow in past 100 years.”

    Musk had previously said he would have to exercise a large number of stock options this year, which would create a big tax bill. Selling some of his stock could free up funds to pay the taxes.

    Prior to the sale, Musk owned a stake of about 23% in Tesla, including stock options. After his exercise on 2.15 million stocks on Monday, he has options for 20 million more shares he needs to exercise by next August.

    “We expect the share sales will continue, as Musk holds millions of options worth billions of dollars that would otherwise expire worthlessly, and he has also prearranged share sales under 10b5-1 plans,” said Jason Benowitz, senior portfolio manager at the Roosevelt Investment Group LLC in New York.

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  • The Body Shop is going full vegan

    The Body Shop is going full vegan

    British cosmetics retailer The Body Shop recently announced that it will solely manufacture and sell vegan products by the year 2023. The beauty company has championed its vegetarian and cruelty-free range of products for years, but finally, the brand decided to go 100 percent vegan. It revealed that its company line will be certified by The Vegan Society, ensuring that its entire formulation portfolio will be completely vegan.

    The Body Shop already offers a large number of vegan products. Even though nearly half of the company’s products are fully vegan, some contain honey, shellac, lanolin, and beeswax, all derived from animals and insects. The company has said before that it plans to move away from animal-derived products, promising to phase out the products that use ingredients such as honey and beeswax. Earlier in 2021, the company’s renowned “White Musk came out with a redesigned vegan recipe, bottled in a recycled container.

    “Our delicious to go 100 vegan is the natural next step for The Body Shop,” The Body Shop’s global brand director Lionel Thoreau told Global Cosmetics News. “Vegan beauty is a critical next step in our sustainability and environmental endeavors. This, along with our global refill and in-store recycling programs makes The Body Shop a destination for ethically-minded customers.”

    Beyond its shift to veganism, the company plans to enhance its recyclable materials and facilities. The chain announced that it wants to establish refill stations for its products later this year. The company wants to begin with 500 stores and then continue with 300 more in 2022. The recycling plan will allow customers to reuse the bottles that they buy from the bottle shop, minimizing the company’s waste footprint. The Body Shop claims that its full range of products will be fully recyclable by 2025, while currently 68 percent of its products come packaged in recyclable containers.

    Founded by Dame Anita Roddick in 1976, The Body Shop launched itself into the beauty and cosmetics industry as one of the few brands that highlighted vegan and cruelty-free products. At the time, the cosmetics industry rarely paid attention to sustainability and animal testing, making consumers unaware of the dangers of the products. The Body Shop, however, jumped into the industry to challenge the market’s status quo. Now decades later, several big cosmetics companies have shifted their policies regarding animal testing. The company’s move to go completely vegan will potentially impact the market further as more companies begin to realize a growing consumer concern regarding sustainability and ethical practices.

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  • Musk Says Tesla To Use New Batteries

    Musk Says Tesla To Use New Batteries

    Tesla Chief Executive Elon Musk said on Wednesday the company will produce Model Y with a new structural battery design and technology at its Berlin factory next year and that could result in a “significant production risk”.

    The U.S. electric carmaker plans to manufacture a new version of its Model Y crossover vehicle, and possibly even battery cells at the site. Last month, Musk said that Tesla will use its Germany-based plant to demonstrate a radical overhaul of how its cars are built.

    The company plans to start the production of Model Y at Gigafactory Berlin during the second half of 2021.

    Tesla’s new battery cell – a larger cylindrical format called 4680 that can store more energy and is easier to make – is key to achieving the goal of cutting battery costs in half and ramping up battery production nearly 100-fold by 2030.

    The company’s new structural battery pack requires the new 4680 battery cells in order to work.

    Musk said on Wednesday that it will take about two years for Tesla factories in Fremont and Shanghai to embrace the new technology.

    “Fremont and Shanghai will transition in 2 years when new tech is proven,” Musk said in a tweet.

    The company said last week that it delivered 139,300 vehicles in the third quarter, a quarterly record for the electric carmaker.

    Tesla’s delivery push has been supported by its new Shanghai factory, the only plant currently producing vehicles outside California, as it is also building a new vehicle and battery manufacturing facility near Berlin.

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