Stock Market
World’s Richest Man, Elon Musk Sold $3.9bn Worth of Tesla Stock Days After Twitter Deal
Musk has sold about $36 billion in Tesla stock in the last 12 months, data from SEC filings have shown.
The world’s richest man and Tesla CEO, Elon Musk sold $3.9 billion worth of Tesla stocks a few days after he completed the acquisition of the notable social media platform, Twitter.
Musk has sold about $36 billion in Tesla stock in the last 12 months, data from SEC filings have shown.
Investors King recalled that Elon Musk completed the acquisition of Twitter in late October in a deal worth $44 billion.
Tesla has lost more than half of the value of its shares ever since Musk bid for Twitter in April 2022.
Although there is no evidence to establish that Elon Musk sold the shares to finance the acquisition of Twitter, there is however a possibility that the money either goes to the acquisition of the social media giant or to help stabilise the company after the purchase.
Musk had earlier disclosed that Twitter is recording a massive revenue drop amid boycotts from advertisers.
Big brands which include General Motors, Ford Motors, and Volkswagen have paused paid advertisements on the Twitter platform.
Meanwhile, a number of Tesla investors have expressed dismay towards Musk’s acquisition of Twitter.
They raised concerns that the Tesla CEO will be too distracted by his purchase of Twitter to give enough attention to addressing Tesla’s problems.
Tesla is already facing strong competition with many well-known automobile companies venturing into the electric car market.
Similarly, there is a growing threat from newer electric vehicle rivals like Rivian and Lucid in the United States.
These small but robust companies including a few outside the United States such as NIO and Li Auto in China are increasing the competition in the industry.
In addition, Elon Musk will have to divide his attention to a portion of companies such as Tesla, SpaceX, and the Boring Company which are under his watch.
Tesla investors believed that the inclusion of Twitter to the growing list of companies that require Musk’s leadership will distract him from focusing on Tesla.