Elon Musk sells Tesla stock for $ 3.95 billion
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Elon Musk sells at least 19.5 million Tesla shares worth $ 3.95 billion. The Blomberg agencies report this, citing some communications to the Sec. It would be his first sales since August. The documents do not specify whether the transactions were planned in advance. The richest person in the world completed the acquisition of Twittet in October, after months of back and forth. In August, Musk said he had closed the sale of Tesla stock and that it was important to avoid an “emergency sale” of the stock in case he was forced to close the Twitter acquisition and struggled to involve other shareholders.
It is not entirely clear how the $ 44 billion deal was financed, beyond the approximately $ 13 billion of debt commitments by Wall Street banks. Several high-profile investors had promised to put around $ 7 billion in the pot for this match, but it is unknown if they all kept their promises. And Musk has never publicly said how he intends to raise his share of the money needed to close the deal. But one thing is clear: Twitter is losing money and now has to pay nearly $ 1.2 billion in annual interest.
Since Musk took over, several large companies have stopped their ads on the platform, waiting to see how it will evolve under the billionaire’s leadership. The billionaire’s drastic moves to cut costs – including firing half the staff and subsequently requiring some to return – and the overhaul of the platform’s operations resulted in two tumultuous weeks within the social media company, with some employees who are unclear whether they are still employees or not.
The deal has also sparked concern from some Tesla shareholders, who say the chief executive is doing too much on external fronts. In the past year, Musk has divested about $ 36 billion in the automaker’s stock, roughly half since it went public with Twitter’s buy-out plan, according to data compiled by Bloomberg. Now the stock is down 53% from last year’s peak, dropping Musk’s assets to $ 179.5 billion from $ 340 billion a year ago, according to the Bloomberg Billionaires Index.
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