Elon Musk sells $8.5 billion in Tesla shares after the Twitter deal
Elon Musk Revealing an additional $4.5 billion in value Tesla stock sales in new regulatory filings on Friday, bringing his total liquidation following the Twitter purchase to more than $8.5 billion.
Tesla’s CEO sold more than 5 million shares on April 28, according to new filings. Subsequent revelations late Thursday of sales totaled 4.4 million shares in the previous two days.
Musk has now sold about $25 billion worth of stock in the electric-car maker over the past six months.
The world’s richest man reached a deal on April 25 to acquire Twitter for $44 billion in a funding scheme that has some Tesla investors nervous. In addition to pledging tens of billions of dollars worth of his Tesla stock to support margin loans, Musk has announced it will raise about $21 billion worth of equity. It’s not clear how much of that money will come from selling a portion of his Tesla stake.
The latest revelation comes after Musk tweeted Thursday that he “has no plans to sell Tesla anymore after today.” He still has time to file more Form 4s disclosing additional sales if more take place on Thursday.
Shares of Tesla fell 0.8% on Friday in New York, bringing its drop to 13% since closing April 22, its biggest weekly drop since November.
The Twitter deal is believed to be one of the largest leveraged acquisitions in history, with Musk arranging $25.5 billion in debt and margin loan financing from lenders including Morgan Stanley. If it falls apart, the party breaking the agreement will have to pay a termination fee of $first billion, under certain circumstances.
Musk’s Twitter pursuit has once again highlighted how Tesla’s valuation is based on the CEO’s level of involvement and investment in the business. He has led the company since 2008 and has long been the company’s largest shareholder.
Tesla shares tumbled late last year when Musk sold off more than $16 billion worth of stock, his first sale in more than five years. The proposals began in November after Musk polled Twitter users on whether he should cut his stake.
With a fortune of $252.2 billion, Musk is the richest person in the world, according to the Bloomberg Billionaires Index. The recent drop in Tesla stock has cost his net worth $18 billion this year, even as the automaker reported better-than-expected earnings and opened new factories. in Germany and Texas.