Elon Musk, the CEO of Tesla, announced that he had sold $4.4 billion in Tesla stocks Thursday and declared that he would make no more sales after that day. This week, the billionaire said in a tweet that he settled on a deal with the Twitter board to accept a buyout deal.
According to a Federal Exchange Commission (Federal Exchange Commission) filing Thursday, Tesla’s owner sold 4.4 million Tesla shares at a value of around $3.99 billion. Additionally, according to the filing, Musk sold the shares Tuesday. Musk tweeted that no further Tesla sales planned after that day.
Elon Musk sold $4.8 billion worth of electric vehicles manufacturer’s stock on April 26, just a day after the Board of Twitter agreed to sell itself to business manganate Elon Musk in around $44 billion agreement. Musk sold 5.3m Tesla stocks for an average price of 905.30 dollars pic.twitter.com/YQlIrWcKsu
— Live News Now (@LiveNewsNow6) April 29, 2022
On Thursday, the American automotive company stock lost ground amid investor concerns that the business magnate may have to sell Tesla shares to fund his $21 billion impartiality contribution to his $44 billion acquisition on Twitter. This week, sales of Tesla stocks were big enough to put plunging pressure on the stock’s price. Additionally, the number of Tesla shares sold represented twenty percent of the average trading value of Tesla shares so far before Tuesday.
Tesla shares lost around 12.2 percent of their value during trading Tuesday, the highest single-day drop in Tesla shares since September of 2020. The decline of stocks triggered a selling splurge by other investors, as forty-five million shares traded hands, around twice the volume of trades one day before.
Musk Can Raise Money by Selling Some Portions of Tesla Shares
Elon Musk expected to use his gigantic Tesla holdings, which made him the wealthiest person on Earth, as a way to finance his Twitter acquisition, but that does not mean he essentially required to sell all the shares he needed to raise the total acquisition price. Likewise, Musk can raise more cash by selling some part of his Tesla shares.
Instead, he can use the Tesla shares as collateral for loans to raise money. But, according to Tesla corporate rules, directors and corporate rules of the company can grow just twenty-five percent of the value of the stock vowed as collateral.