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Elon Musk’s recent sale of Tesla shares reflects Twitter and the billionaire investor’s need to meet some of the debt obligations that financed his acquisition of the social media platform.
Elon MuskThe iconic Chief Executive Officer (CEO) of the American electric car maker, Tesla Inc (NASDAQ: TSLA ) sold an additional 20 million shares of the company, raising more than $3.5 billion.
The sale of Tesla stock was disclosed through a regulatory filing Filing to the United States Securities and Exchange Commission (SEC) The petition was released on Wednesday.
This comes after it sold at least $4 billion worth of stock in November. As one of Tesla’s most important shareholders and the world’s richest man, Elon Musk has begun to steadily dump Tesla stock this year, much to the excitement of the company’s investors.
Elon Musk’s stock sales may seem erratic, but research shows it’s always on time. Musk has reneged on promises to stop selling shares after April 28 of this year, but has since announced to his followers that he has sold three more shares during that time.
According to figures from Verity Data, Elon Musk has sold a total of 94,202,321 shares so far this year at an average price of $243.46 per share for pretax income of about $22.93 billion.
“Musk’s previous sales had effective deadlines going through November 2021, so Tesla shareholders should pay attention to Musk’s actions, not his words — or lack thereof — when it comes to his latest sales.” said Ben Silverman, director of research at Verity Data.
Despite the recent stock selloff, Elon Musk still owns a total of $66 billion worth of Tesla stock to his name. The company’s shares have fallen amid the economic crisis so far this year. Year-to-date, TSLA has shed approximately 60.8% of its value. The stock is on track to post a poor performance this year.
Tesla stock sale and Twitter link
Elon Musk’s recent sale of Tesla shares reflects Twitter and the billionaire investor’s need to meet some of the debt obligations that financed his acquisition of the social media platform.
Tesla investors are increasingly concerned about Musk’s involvement in both companies, especially as it appears to be rubbing off on the automaker to pay the social media giant. Investors have called on Tesla to buy back some of the unloaded stock in an effort to help stem the stock’s slide.
In response, Musk said in the company’s third-quarter earnings report that Tesla would begin a buyback program next year. According to him, the withdrawal will be between $5 billion and $10 billion.
Elon Musk’s stock sell-off sent the company’s stock down 2.58% to a new low of $156.80 by Wednesday’s close. Premarket shares were down an additional 2.82% to $152.38.
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