Elon Musk, the CEO of Tesla Inc., sold $6.9 billion worth of company stock in a tweet urging investors to hold off on an emergency stock sale while the company battles Twitter Inc. in court over a $44 billion takeover offer.
According to a number of regulatory papers that surfaced after US markets closed on Tuesday, Musk sold 7.92 million shares on August 5. He currently holds 155.04 million Tesla shares.Musk responded in a series of late-night tweets, indicating he wished to prevent an emergency sale of stock, as rumors about the cause for the disposal grew.
When asked by fans if he had stopped selling Tesla stock and would repurchase it if the deal fell through, Musk said, "Yes."
But legal professionals have said that Musk would need to sell more Tesla shares if he loses his case against Twitter and is required to complete the acquisition or pay a heavy fine.
Musk tore up the contract he signed on April 25 to purchase the social media company, and now the two parties are locked in a protracted legal dispute that might possibly cost Musk billions of dollars. On October 17, the trial between the parties begins.According to Charu Chanana, a strategist at Saxo Capital Markets Pte in Singapore, "He definitely is clarifying that he is cashing up for Twitter." "However, the sale's timing, which was soon before the US CPI announcement, does indicate something. The bear market rebound has begun to sputter, and further downgrading of Fed predictions might bring on additional losses for stocks, particularly in the tech sector.With the most recent sales, Musk has now sold nearly $32 billion worth of stock in less than a year. Although they are still down by approximately 20% for the year, Tesla shares have increased by roughly 35% from their lows.
Musk, the richest man in the world, sold $8.5 billion worth of shares in Tesla back in April and then declared that "no future TSLA sales were planned."According to the Bloomberg Billionaires Index, Musk has the highest fortune in the world with a $250.2 billion fortune, but as Tesla share prices have fallen, his worth has decreased by around $20 billion.
Following the shares' recent recovery, the carmaker's shareholders approved a three-for-one stock split last week in an effort to draw even more retail investors. Along with historic US climate change legislation that intends to increase the use of clean energy through a number of tax incentives, Tesla's better-than-expected second-quarter earnings have been a positive.
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