Musk sells Tesla shares worth $3.95 bln days after Twitter takeover

Date:

Nov. 8 (Reuters) – Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk has sold $3.95 billion worth of shares in the electric vehicle maker, according to US regulatory filings, days after he completed his $44 purchase of Twitter Inc. billion completed.

Musk, whose net worth fell below $200 billion after investors dumped Tesla stock, has unloaded 19.5 million shares between Friday and Tuesday, according to filings released by the U.S. Securities and Exchange Commission.

The latest share sale leaves Musk behind a roughly 14% stake in Tesla, according to a Reuters calculation.

The purpose of the sale has not been disclosed.

The latest sell-off comes as analysts had widely expected Musk to sell additional Tesla stock to fund the Twitter deal.

Musk, the world’s richest man, had claimed in April that he was done selling Tesla stock. Still, he sold another $6.9 billion worth of Tesla stock in August and said the sale was made to pay for the social media platform.

Musk, the world’s richest man, had about $20 billion in cash after selling some of his stake in Tesla, including last year’s sales. This would have required him to raise an additional $2 billion to $3 billion to fund the acquisition, according to a Reuters calculation.

Tesla has lost nearly half of its market value and Musk’s net worth has dropped $70 billion since he made a bid on Twitter in April.

Twitter and Tesla did not immediately respond to Reuters’ requests for comment.

Musk took over Twitter last month and has taken drastic measures, including firing half of the staff and a plan to charge for blue checks.

The billionaire pledged to provide $46.5 billion in equity and debt financing for the acquisition, covering the $44 billion price tag and closing costs. Banks, including Morgan Stanley (MS.N) and Bank of America Corp (BAC.N), have pledged to provide $13 billion in debt financing.

Musk’s $33.5 billion equity pledge included his 9.6% stake in Twitter, which is worth $4 billion, and the $7.1 billion he had secured from equity investors, including Oracle Corp (ORCL.N) co-founders. founder Larry Ellison and Saudi Prince Alwaleed bin Talal.

Musk had tried to walk away from the deal in May, claiming that Twitter had underestimated the number of bot and spam accounts on the platform. This led to a series of lawsuits between the two parties.

Reporting by Akriti Sharma in Bengaluru and Hyunjoo Jin in San Francisco; Editing by Sherry Jacob-Phillips

Our Standards: The Thomson Reuters Trust Principles.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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