Twitter Investor Accuses Elon Musk Of Tanking Value of App: ‘Tremendous Amount of Wealth Destruction’

AP Photo/Czarek Sokolowski

A Twitter investor placed the blame squarely on Elon Musk for cratering the value of the social media app and burning millions for those who invested in the company.

Musk purchased the company — and renamed it “X” — for $44 billion in 2022. A significant portion of that money came from bank loans.

Now, those investments have seen massive drops in value. According to a report from The Washington Post, Fidelity owned a $316 million stake in Twitter at the time of Musk’s purchase. That purchase, Fidelity said Friday, is now worth around $88 million.

Saudi Prince Alwaleed bin Tatal — who said he remains “happy” with his investment — has lost approximately $1.36 billion of his $1.89 billion purchase, the Post estimated. The prince denies that there’s been any devaluation and suggested his investment even could be worth more than what he paid for it.

Not all investors are as bullish, however. Ross Gerber, who reportedly invested less than $1 million in X, accused Musk of a “tremendous amount of wealth destruction.”

“Elon’s done a tremendous amount of wealth destruction since he’s purchased Twitter,” Gerber told the Post.

“For the people who put capital into him for any amount… trying to explain to people how he lost [so much money] is not a fun conversation.”

Much of Twitter’s diminished value can be attributed to lack of ad revenue. Many advertisers cut ties with the platform over toxic content that has spread after Musk made changes to its content moderation. In early August, Musk and current CEO Linda Yaccarino announced they were suing advertisers for organizing an “illegal boycott” against the platform.