{"id":21067,"date":"2022-04-29T06:00:27","date_gmt":"2022-04-29T10:00:27","guid":{"rendered":"http:\/\/autosector.com\/?p=21067"},"modified":"2022-04-29T06:00:27","modified_gmt":"2022-04-29T10:00:27","slug":"elon-musk-sold-4-billion-worth-tesla-tsla-shares","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=21067","title":{"rendered":"Elon Musk sold $4 billion worth of Tesla (TSLA) shares, but he says he is done"},"content":{"rendered":"

Elon Musk confirmed that he sold about $4 billion worth of Tesla (TSLA) shares over the last few days, which sent the automaker\u2019s stock spiraling down, but now he says he is done selling Tesla stocks.<\/p>\n

Yesterday, we reported that Tesla\u2019s stock was down 16%<\/a> since the announcement that Twitter has accepted Musk\u2019s offer to be acquired for roughly $44 billion.<\/p>\n

We speculated that was either due to confusion amongst Tesla investors about Musk\u2019s plan to finance the acquisition by selling more Tesla stocks or even Musk already selling stocks, which could be putting pressure on the stock.<\/p>\n

Now Musk revealed through SEC filings with Tesla that he has indeed been selling shares on April 26 and 27 for a total of 4.4 million or about $4 billion worth.<\/p>\n

In a tweet following the disclosure, the CEO said that he doesn\u2019t plan to sell more Tesla shares at this moment:<\/p>\n

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\u2018No further TSLA sales planned after today.\u2019<\/p>\n<\/blockquote>\n

The sale represented about 3% of Musk\u2019s entire Tesla stake and it is expected to be used as part of the $21 billion equity part of the Twitter acquisition.<\/p>\n

So far, the Twitter deal contributed to erasing about $100 billion worth of market capitalization for Tesla.<\/p>\n

Electrek\u2019s Take<\/h2>\n

This is where Musk\u2019s Twitter business intertwines with Tesla\u2019s. The CEO used to say that he will be \u201cthe last one to sell Tesla shares\u201d.<\/p>\n

Now it\u2019s pretty clear that he will be the \u201clast one to sell Tesla shares unless the acquisition of a large social network is involved\u201d. That removes a lot of value in the commitment of Tesla\u2019s largest individual shareholder not to sell shares, which has helped Tesla a lot over the years.<\/p>\n

In principles, I\u2019m not against Musk buying Twitter and I do like a lot of the changes that he has talked about implementing at the platform, but at this point, it is hard to see how it aligns with Tesla\u2019s much more important mission to accelerate the transition to sustainable energy and why he is willing to negatively affect Tesla\u2019s stock to pursue that.<\/p>\n

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