Elon Musk Sells $4bn Worth of Tesla shares
TECHDIGEST- Elon Musk, the CEO of Tesla, has sold nearly $4 billion in Tesla stock, just days after agreeing to buy Twitter for £3.2 billion.
The deal has fueled rumors that it will be used to fund his $44 billion takeover of the social media network. Mr. Musk’s buyout offer was accepted by Twitter’s board of directors on Monday.
Tesla’s stock plummeted earlier this week on fears that Mr. Musk would sell a portion of his interest in the company to fund the deal. He did, however, say that he had no plans to sell any more of his shares in the automaker on Twitter. Mr. Musk sold a total of 4.4 million Tesla shares on Tuesday and Wednesday, according to filings with the US Securities and Exchange Commission. It was his first Tesla stock sale since selling $16.4 billion in equity last November and December. That came after he polled his 80 million Twitter followers on whether he should sell 10% of his Tesla stock. Tesla’s stock has dropped about 20% since Mr. Musk said earlier this month that he had purchased a 9.2 percent stake in Twitter.
After the social media firm’s board accepted his buyout offer on Tuesday, the carmaker’s stock market value plummeted by more than $125 billion.
Mr. Musk stated that he would contribute $21 billion of his personal assets to help finance the $44 billion deal. Investors feared he would have to sell Tesla stock to help fund the buyout.
Mr. Musk is the world’s richest individual, with a net worth of about $250 billion, thanks mostly to his Tesla shareholding. He also owns more than 40% of the rocket company SpaceX, which is valued at more than $100 billion.