Elon Musk sells another $3.5 billion in Tesla stock. The title sinks in New York
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Elon Musk has sold another $3.5 billion in Tesla stock. This is what is written in the documents presented today by the company to the Securities and Exchange Commission, the authority that supervises the US financial market. According to a calculation by the Wall Street Journal, from November 2021 to today Musk has sold more than 39 billion dollars of shares of his company. Much of the money obtained from the sale of the shares would have been used by Musk to finance the Twitter operation, which cost 44 billion.
Tesla shares sold by Musk so far
In the last few months alone—since he pledged to buy Twitter—Musk sold $8.4 billion of Tesla stock in April; in August 6.9 billion; 3.4 billion in November; 3.5 billion in December 2022. Tesla shares yesterday hit their lowest in 14 months: 156 dollars per share. And news of Musk’s new stock sale has scuttled the stock in the pre-market on Wall Street, where it currently scores a -3%. His stake in the electric car maker is currently dropped to 13.4%.
Musk recently lost the title of richest man in the world to Bernard Arnault, head of the holding company of the luxury brand Luiss Vuitton. The collapse in the value of Tesla, which today represents the majority of the value of Musk’s assets, contributed to the historic overtaking by the head of the French luxury brand. But another cause can be found in the fact that Musk was forced to sell Tesla shares to finance the Twitter operation.
Twitter’s problems also sink Tesla
A social network paid a lot, probably much more than its current market value, and which saw Musk engaged in a very heated battle first with the former executives; then with the employees; then with the Twitter structure itself, between the fight against bots and new provisions on content moderation.
His crusade in favor of freedom of expression would have put advertisers on the run, causing new cash problems for the social network. In November, as reported by the Wall Street Journal, revenue would have decreased by 85% compared to the previous year. An important figure considering that in the last year of the company’s life, 89% of Twitter’s revenue came from advertising.
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