Confidence Elon Musk dangerous. The world’s richest man agreed to buy Twitter for $44 billion, and three months later backed out. He sold $8.5 billion worth of Tesla stock to pay for the deal, and said no further sales were planned. But three months later – despite backing off the Twitter deal – he surprised the market by announcing the sale of nearly $7 billion of shares in the electric car maker.
The businessman reported the operations to the US Securities and Exchange Commission (SEC), the government watchdog agency responsible for regulating stock markets. Musk made six different trades on Tuesday night, with dozens of sell-offs made between last Friday and Tuesday.
In total, Musk sold just over 7.9 million shares worth $6.9 billion. After these deals, Musk still owns 155 million shares of Tesla, which are valued at more than $130 billion.
Tesla stock prices fell as a result of the sales, falling 8.8% to $850 per share. So far this year, Tesla shares are down 29%.
Musk previously sold Tesla shares in late April after he announced his intention to buy Twitter. The billionaire revealed that in the three days following the agreement buy social networkHe sold $8.5 billion worth of Tesla stock. After reporting the first part of those sales, for about $4 billion, Musk tweeted: “No more TSLA sales planned after today.” But he did not clarify that he had not yet announced the additional sales.
In April, Musk apparently sold shares to buy Twitter. Regarding the recent sale, the billionaire said the money could be used to fund a potential deal on Twitter if he loses a legal battle with the social media platform. “In the (hopefully unlikely) event that Twitter forced this deal* and some of its equity partners didn’t, it’s important to avoid an emergency sale of Tesla stock,” he wrote.
In the (hopefully unlikely) event that Twitter forced this deal to close *and* some stock partners didn’t come through, it’s important to avoid an emergency sale of Tesla stock.
– Elon Musk August 10, 2022
Musk in early July tore up his April 25 agreement to buy Twitter for $44 billion. Twitter sued Musk to force him to complete the deal, rejecting his claim that he was misled about the number of spam accounts on the social media platform as buyer’s remorse in the wake of tech stocks’ plunge.
The Wilmington judge responsible for the case decided to prosecute Between the 17th and the 21st of October. The billionaire businessman’s lawyers had requested that the operation be postponed until February 2023, arguing that there was a need to… Determine the real number of fake accounts and bots on the platform, which Twitter estimated at less than 5% of the total. But Chancellor Kathleen St. Jude McCormick, the chief justice of the Delaware court, agreed with Twitter’s view that an earlier trial was favored due to investor uncertainty. In July, Twitter announced that it would hold a shareholder meeting on September 13 to vote on the acquisition deal.
Musk is also facing trial for its 2018 release CEO Performance Award, which is made up of 101.3 million stock options. A lawsuit filed by a shareholder alleges that the package was excessive.
#Twitter #Elon #Musk #reneges #promise #sell #million #shares #Tesla #stock #Economy #Business Source