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Elon Musk sold 8 million Tesla shares hours after the company stock saw a boost following the shareholder meeting on Thursday. The move reminded many of the crypto pump and dump schemes.
Although the number of shares Musk sold seems impressive, this is not the biggest we’ve seen. Last December, Tesla’s CEO sold more than 10 million shares to pay his taxes. Neither is in terms of value since the recent dump worth $6.9 billion was nowhere near the $8.5 billion from the April sale. In a series of tweets, Musk confirmed he wanted to avoid emergency stock sales if he would be forced to buy Twitter after all.
“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” wrote Musk on Twitter late on Tuesday.
When asked whether he’s done selling Tesla stock, Musk said “yes.” But this is something that Musk has said in the past, so take that with a grain of salt. Reading through multiple Form 4 SEC filings, we notice the recent share dump happened between August 5 and 9. According to Reuters, Musk has sold a total of $32 billion worth of Tesla shares over the past 10 months. He still owns around 155 million, or just under 15% of Tesla.
Analysts concluded that Musk’s latest stock sale significantly increased his odds of buying Twitter. The “he will/no he won’t buy Twitter” saga got Musk dropping the $44 billion deal and many headaches down the road. Speculations abound that Musk will eventually settle with buying Twitter for a more favorable amount. However, he might also be forced to pay the price in full, plus compensations.
In that case, Musk would likely have to sell even more Tesla stock, possibly after announcing the Q3 2022 results, to benefit from the improved stock value. This possibility is even higher if one or some investors will walk out of the deal, which would not be unprecedented.
“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” wrote Musk on Twitter late on Tuesday.
When asked whether he’s done selling Tesla stock, Musk said “yes.” But this is something that Musk has said in the past, so take that with a grain of salt. Reading through multiple Form 4 SEC filings, we notice the recent share dump happened between August 5 and 9. According to Reuters, Musk has sold a total of $32 billion worth of Tesla shares over the past 10 months. He still owns around 155 million, or just under 15% of Tesla.
Analysts concluded that Musk’s latest stock sale significantly increased his odds of buying Twitter. The “he will/no he won’t buy Twitter” saga got Musk dropping the $44 billion deal and many headaches down the road. Speculations abound that Musk will eventually settle with buying Twitter for a more favorable amount. However, he might also be forced to pay the price in full, plus compensations.
In that case, Musk would likely have to sell even more Tesla stock, possibly after announcing the Q3 2022 results, to benefit from the improved stock value. This possibility is even higher if one or some investors will walk out of the deal, which would not be unprecedented.
Yes.
— Elon Musk (@elonmusk) August 10, 2022
In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock.
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