by Chris Adede . Nov 18, 2022
Elon Musk Cashes Out $4 Billion Worth Of Tesla To Fund Twitter Takeover
Tesla CEO Elon Musk is selling millions of Tesla shares again. According to three filings with the U.S. Securities and Exchange Commission, the celebrity executive disposed of 19.5 million shares Tuesday, which is worth about $3.95 billion.
The sale was made through his trust. It comes after Musk's recent Twitter takeover raised eyebrows among investors and analysts who worried about his ability to focus on Tesla's business during a tumultuous time.
According to SEC filings, Musk sold 19.5 million shares of Tesla between November 4 and November 8. The timing of the sales coincided with a drop in investors' confidence in Tesla. This caused its stock price to plummet over the past month.
The sale is said to have been made to close the deal with Twitter, reportedly valued at $40 billion. The deal would see Musk take over as CEO of Twitter, with current CEO Jack Dorsey leaving the company.
It's unclear how much control Musk would gain in the takeover. But, he reportedly plans on keeping his role as Tesla CEO. In addition, it needs to be clarified whether the deal will go through or if any changes will be made before it closes.
Elon Musk is known for making bold statements, but this one takes the cake. After stating in April that he would not sell more Tesla stocks, he sold $6.9 billion worth of Tesla shares to fund his Twitter takeover.
The move shocked many investors who have come to expect the unconventional entrepreneur to do the unexpected. Many believed Musk was committed to keeping his position at the company he co-founded in 2003. However, the decision was made due to a need for cash. An opportunity presented itself at a reasonable time.
Tesla's stock has been on a downward spiral for the past month. This week, it reached a new low when Elon Musk cashed out $4 billion worth of his shares in the company.
Effect of Twitter Takeover on Musk’s Fortune
Elon Musk's net worth dropped by $70 billion since the Twitter takeover drama back in April. The deal was completed last month, but it seems Musk isn't having a good time with things now.
More recently, Musk introduced a paid blue check verification mark for users who wish to be verified on Twitter and banned bots from the platform. He also fired 50% of staff at Twitter to cut costs, which may have contributed to his losses.
At the time, Musk said that the purchase would help him "build a better platform for political discourse." He also said he would be "committed to making it [Twitter] a safer place."
Some people are concerned whether Elon Musk would be able to turn around the fortunes of Twitter. Others pointed out that this is exactly what he did with Tesla: after buying the company in 2004, he turned it into one of America's most valuable automakers.
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