February 4, 2023

Eureka News

All the News All the Time

Elon Musk is selling another $3.6 billion in Tesla stock

Elon Musk has bought another tranche of Tesla shares worth nearly $3.6 billion

The billionaire, who acquired the social media company in October, has sold four tranches of shares totaling nearly $23 billion since announcing his Twitter acquisition.

It’s the third sale since April’s declaration that there would be “no further TSLA sales” to support the deal.

This latest sell-off, which reportedly took place between Monday and Wednesday this week, was for 22 million shares in the electric vehicle group.

Reasons for the sale were not given. Musk could not be reached for comment Wednesday night.

Musk organized the financing of the Twitter purchase with $12.7 billion in bank debt

On Tuesday, Musk tweeted, “At the risk of becoming obvious, beware of debt in turbulent macroeconomic conditions, especially if the Fed continues to hike rates.”

The sale comes as investors showed frustration about Tesla’s future under the leadership of what some saw as a very distracted CEO.

Tesla’s share price has fallen 61 percent since the beginning of the year, underperforming competing automakers like Ford and General Motors.

“Elon has left Tesla and Tesla does not have a functioning CEO,” Leo KoGuan, a major Tesla shareholder, wrote on Twitter.

“Are we just Elon’s foolish bag holders?” he added in another post. “An executioner like Tim Cook is needed, not Elon.”

Elon left Tesla and Tesla doesn’t have a functioning CEO

Tesla needs and deserves to have a full-time CEO

What should Tesla BOD do, do nothing? Elon will find his own successor under BOD’s independent supervision https://t.co/AJSvij9ncP

— KoGuan Leo (@KoguanLeo) December 14, 2022

Musk appeared to try to assuage concerns on Twitter, writing on Tuesday, “I will ensure Tesla shareholders benefit from Twitter over the long term.”

But such announcements have been overshadowed by the controversy over how the volatile social network is managed.

On Wednesday, Twitter suspended an account that shared publicly available data about the movements of Musk’s private jet. The existence of the account had previously been cited by Musk as evidence that he would not put his own interests ahead of his purported principles of “freedom of speech” in operating Twitter.

Musk said Wednesday that the account puts his family at risk and announced a change to Twitter’s location disclosure policy.

“Any account found to be doxxing real-time location information of anyone will be suspended as it constitutes a physical security breach,” Musk wrote on Twitter, referring to the phrase typically used to describe the malicious release of an individual’s private information, such as B. a home address to describe.

Tesla’s stock price fall was so severe that Musk lost his coveted position as the world’s richest man, falling to second place behind luxury tycoon Bernard Arnault, according to the Bloomberg Billionaires Index.