Elon Musk’s Latest Tesla Stock Sale Is Tied To Twitter and the need for the billionaire investor to meet certain credit obligations with which he financed the acquisition of the social media platform.
Elon Musk, the iconic chairman and chief executive officer (CEO) of American electric car maker Tesla, has sold an additional 20 million shares of the company, with accumulated funds amounting to more than $3.5 billion.
The Tesla stock sales were revealed by a regulatory filing made with the United States Securities and Exchange Commission (SEC). This filing was released on Wednesday.
It comes following selling off at least $4 billion worth of shares in November. As one of Tesla’s largest shareholders and the richest man in the world, Elon Musk moved this year to systematically dump shares of Tesla, a move that has continued to irritate the company’s investors.
Elon Musk’s stock sales may seem erratic, but research has shown that they are always well timed. Musk reneged on promises to stop stock sales following April 28 this year, but he made up to three more stock sales following making the statement to his supporters at the time.
According to figures from VerityData, Elon Musk has sold a total of 94,202,321 shares since the start of the year, at an average price of $243.46 per share, for pre-tax proceeds of approximately $22.93 billion. dollars.
“So Tesla shareholders should pay attention to Musk’s actions, not his words – or his lack of words when it comes to his recent sales.“said Ben Silverman, director of research at VerityData.
Despite the latest stock sale, Elon Musk still owns a total of $66 billion worth of Tesla stock to his name. The company’s shares have taken a beating during the economic crisis we have experienced so far this year. Year-to-date, TSLA has lost regarding 60.8% of its value. The stock is on course for the worst performance this year.
Tesla stock sale and Twitter link
Elon Musk’s latest Tesla stock sale is said to be linked to Twitter and the billionaire investor’s need to meet certain credit obligations with which he financed the acquisition of the social media platform.
There are growing concerns among Tesla investors regarding Musk’s involvement in the two companies, and especially regarding what appears to be rubbing the automaker to pay the social media company. Investors have asked Tesla to buy back some of the shares that are being shed in order to cushion the stock’s free fall.
In response, Elon Musk said in the company’s third-quarter earnings report that Tesla will launch the buyout program next year. According to him, the takeover will be between 5 and 10 billion dollars.
Elon Musk’s stock sales fueled another tumble in the company’s share price, which fell 2.58% to $156.80 at Wednesday’s close. Shares fell another 2.82% to $152.38 in the pre-market.
