Elon Musk sold $4 billion worth of Tesla stock following announcing… Huge $44 billion deal to buy Twitter.
The disclosures showed that the CEO of Tesla disposed of regarding 4.4 million shares on April 26 and April 27.
Wall Street analysts and investors in the electric car maker suspected that Musk might need to sell some shares to cover the $21 billion capital share of the deal he personally guarantees, according to a Bloomberg report seen by Al Arabiya.net.
Musk tweeted shortly following the announcement that he “has no more Tesla stock sales planned anymore.”
On Monday, Musk and Twitter reached an agreement to buy the social networking company of the world’s richest man. His pursuit raises many issues and risks for Tesla, as Musk has served as CEO since 2008 and has long been the largest shareholder. Meanwhile, the confirmation of his sales might alarm shareholders, including dozens of retail investors.
Tesla shares fell 12% on April 26, the most since September 2020, and were little changed in the next two sessions, with the stock closing Thursday at $877.51.
Another $12.5 billion from Musk’s Twitter deal is secured by his stake in Tesla.
Twitter shares closed Thursday at $49.11, less than the $54.20 that investors will receive for each share they own under the company’s deal with Musk.