Elon Musk sells almost $4bn more of Tesla shares after Twitter takeover

Business

Elon Musk has sold Tesla stock worth almost $4bn (£3.46bn) after completing his takeover of Twitter.

The founder and chief executive of the electric vehicle maker unloaded 19.5 million shares between Friday and Tuesday, according to filings published by the US Securities and Exchange Commission.

The purpose of the sale was not disclosed but leave Musk’s holdings in Tesla at around 14%, according to the Reuters news agency.

The value of Tesla’s stock has plummeted by almost half this year alongside many other so-called growth stocks – seen as susceptible to the tougher global economy but particularly high levels of inflation.

However, Tesla’s value also reflects a series of sales by Musk himself to fund the $44bn Twitter acquisition and wider shareholder sentiment that Tesla would lose focus now that the Tesla/Twitter/SpaceX billionaire had further demands on his time.

Analysts had widely expected Musk to sell additional Tesla shares to finance the Twitter deal.

Please use Chrome browser for a more accessible video player


0:50

How Twitter worker heard job news

He had pledged to provide $46.5bn in equity and debt financing for the acquisition, which covered the $44bn price tag and the closing costs.

More on Elon Musk

Banks, including Morgan Stanley and Bank of America committed to provide $13bn in debt financing.

Musk’s $33.5bn equity commitment included his own 9.6% Twitter stake, which is worth $4bn, and the $7.1bn he had secured from equity investors including Oracle co-founder Larry Ellison.

Despite jitters, that saw him pull away from the deal in May, he completed the sale last month and has since gone on to sack around half the workforce and said he will charge users $8 a month for blue check marks to verify the authenticity of a user’s account.

Musk was yet to comment on why he sold the Tesla stock.

Articles You May Like

Just how big a win was election for Donald Trump?
Autumn internationals overreactions: Should Ireland ditch old guard? Will Suaalii save Australian rugby?
Assisted dying bill ‘about autonomy and choice’, MP says
Momentum is swinging behind us, say assisted dying opponents, after health secretary’s warning
WikiLeaks whistleblower Chelsea Manning says censorship is still ‘a dominant threat’