An investor in Twitter confirmed that Elon Musk is reaching out to investors for additional funding in the struggling social media platform. Jared Birchall, the managing director of Elon Musk’s family office, reached out to investors earlier in the week.
Ross Gerber, president, and CEO at Gerber Kawasaki Wealth & Investment Management confirmed that a Musk representative reached out to him with an offer of more Twitter shares at the same price of $54.20 that Musk paid when he took the company public in October. Both Twitter and Musk have not yet responded to Reuters’ questions on the matter.
Following Musk’s new approach to regulating tweets and the company’s struggle to hit revenues and pay interest on the $13 billion debt that Musk took to acquire the company, advertisers have responded negatively, with many pulling out of Twitter.
In an effort to put money back into the company, Musk sold $3.6 billion worth of shares in Tesla earlier in the week. Last week, Tesla posted its biggest weekly loss since March 2020 as investors worry over Musks’ distraction with Twitter and the slowing electric vehicle economy.