lon Musk sold about $8.4 billion of his stake in Tesla this week to buy Twitter, according to the US Securities and Exchange Commission (SEC). The billionaire claims he won’t be selling Tesla shares again after this.
Musk sold most of his shares on Tuesday and Wednesday, (April 26 and 27, 2022), releasing 4.4 million shares. Then the next day, he sold another 5.2 million shares and tweeted, “No further TESLA sales are planned after today.”
Tesla’s share price, which previously fell 12%, rose immediately after Musk sold it. Reporting from The Verge (30/4), the company’s shares rose about 3.9% on Friday, April 29, 2022.
Tesla has a very volatile stock. However, Tuesday’s 12% drop was its worst daily drop since September 2020, with the company losing about 21% of its value. Some investors, including Musk himself, have suggested that Tesla’s share price is overvalued. The company’s market capitalization has exceeded $1 trillion.
Additionally, Twitter’s board of directors accepted Musk’s offer of $54.20 per share, or $44 billion, to take control of the company, on April 25. To fund the deal, Musk said he used loans and private equity. A total of $12.5 billion of the $25.5 billion planned form of loans came from Tesla shares, while equity partners to share the cash burden were not named.