Elon musk sells billions of dollars in Tesla shares
Elon Musk sells Tesla shares worth $4BILLION after buying Twitter for $44billion: Says there are ‘no further sales planned after today’
Elon Musk sold 4.4 million shares of Tesla valued at nearly $4 billion The sales, which began on Tuesday, come as he moves forward to purchase the social media giant Twitter for $44 billionIt also triggered Tesla stocks to plummet by 20 percent, with Musk staking $12.5 billion of his ownership in the company for his Twitter acquisition Musk said he would not sell anymore Tesla stocks as of Thursday night
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Elon Musk sold 4.4 million shares of Tesla valued at nearly $4 billion, according to filings with the Security Exchange Commission.
The sale in shares, which were conducted on Tuesday and Wednesday, was coupled with the stock of the electric vehicle company plummeting 20 percent, with Musk, the company’s CEO, simply tweeting on Thursday, ‘No further TSLA sales planned for today.’
The sale comes as Musk, the world’s richest man, goes forward with his plan to purchase Twitter for $44 billion.
Elon Musk (above) sold 4.4 million shares of Tesla valued at nearly $4 billion on Thursday
Tesla’s stock began plummeting on Tuesday as Musk started offloading his shares
According to the SEC filings, Musk, who owned 17 percent of Tesla, made the sales at prices between $870 and $1,000 per share.
Musk had staked $12.5 billion of his ownership in Tesla as collateral to purchase Twitter, with his commitment to take over the social media platform causing an earlier drop in Tesla stock as investors feared he will be too preoccupied with his latest acquisition.
Analyst Dan Ives, of Wedbush Securities, said that Musk’s focus on Twitter and the recent sell of Tesla stocks was foreboding for the future of the electric vehicle company.
‘It’s a brutal cycle for Tesla investors to navigate and casts a shadow on the name with Musk selling more stock,’ Ives told Bloomberg. ‘The Twitter deal is becoming an albatross for Tesla’s stock and this pours gasoline on the raging fire.’
The 12 percent fall on Tuesday, when Musk began offloading his shares, represented the biggest fall in Tesla shares since September 2020.
Musk intends to buy Twitter using the stake in Tesla, coupled with a $13 billion buyout loan from lenders and his own personal assets of $21 billion.
According to SEC filings on Tuesday, Musk would owe a $1 billion termination fee if he fails to secure enough funding to complete the deal.
Twitter, however, could owe Musk a $1 billion break-up fee if it accepts a competing offer or if shareholders reject the deal.
Unlike Tesla’s volatile week, Twitter has seen steady gains as Musk prepares to take over
The release of the SEC filings on Thursday came as Twitter failed to meet revenue estimates in what may be one of its final quarterly earnings reports as a public company.
The social media company said revenue for the first quarter totaled $1.2 billion – a 16 percent increase from last year but less than the $1.23 billion that Wall Street analysts had expected.
However, San Francisco-based Twitter reported an average of 229 million daily active users in the quarter, up 16 percent from last year in a positive sign of growth.
Twitter canceled the conference call with executives and industry analysts that usually accompanies its results, so there will be little further insight into the company’s current financial condition.
‘Given the pending acquisition of Twitter by Elon Musk, we will not be providing any forward looking guidance, and are withdrawing all previously provided goals and outlook,’ the company said in a statement.
This story is developing.
