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Elon Musk sells another $7 billion of Tesla stock

Elon Musk $6.9 billion drop in value in stocks Tesla Inc. to accumulate cash before the trial could force the billionaire to follow through with the deal to buy Twitter Inc.
Tesla’s CEO sold about 7.92 million shares in the last three trading days, according to regulatory filings. Musk, who still owns nearly 15% of the electric carmaker, tweeted that he’s done selling and will buy Tesla stock if the Twitter deal doesn’t close.
“In the event that (hopefully) Twitter forces this deal to close *and* some equity partners fail to pass, it is important to avoid an emergency sale of Tesla stock,” Musk wrote.
Tesla was up 3% to $875.51 at 9:50 a.m. Wednesday in New York, while Twitter was up 3.2% to $44.19.
Musk has now dumped about $32 billion worth of Tesla stock since November. The world’s richest man said less than four months ago he has no plans to sell any more shares and has since tried to close. terminated its $44 billion acquisition of Twitter. The social media company sued to force Musk to make the deal, and a trial is scheduled for October.

Musk

“He’s cashing in on Twitter, and believes Musk may be trying to take advantage of Tesla’s about 35 percent bounce back,” said Charu Chanana, strategist at Saxo Capital Markets Pte in Singapore. since late May. “The bear market rally has begun to level off and the Fed’s re-pricing of expectations could mean more pain for stocks ahead, especially is in the technology sector.”
Investors have been skeptical that Musk, 51, has completed a sell-off of Tesla stock, with 68 percent of 1,562 respondents to an MLIV Pulse survey saying last month he was likely to sell heavily. than whatever happens with the Twitter deal.
“Musk said at the Tesla shareholder meeting that any weakness in the stock price is a buying opportunity and then 24 hours later starts selling the stock itself,” said. Jim Dixon, a senior equity trader at Mirabaud Securities. Which is “very unlikely”, Musk has completed the sale of shares, Dixon speak.
Musk can keep selling Tesla, with or without Twitter: MLIV Pulse
Tesla’s market fortunes have been tied to the Twitter deal since Musk made the surprise decision in April. The automaker’s shares initially tumbled on fears the pursuit would cost him his focus. and the risk associated with the margin loan he intends to take against his Tesla stock. Shares rallied as Musk abandoned the borrowing plan and within weeks after he said he wanted to close the transaction.
When Musk abandoned plans to partially finance the Twitter purchase with a Tesla margin loan, it increased the size of the deal’s equity to $33.5 billion. He previously claimed to have secured a $7.1 billion stake commitment from investors including billionaires. Larry EllisonSequoia Capital and Binance.
Over the weekend, Musk tweeted that if Twitter provides an account sampling method to determine the number of bots on its platform, “the deal will proceed on the original terms.”
The Twitter agreement includes a provision that if it falls apart, the party breaking the agreement will have to pay a termination fee of $1 billion in certain circumstances. Legal experts have debated whether the spammy program conflict was enough to allow Musk to walk away from the deal.
Musk’s sale of Tesla stock began after he polled Twitter users on whether he should cut his stake. By far, he remains the largest stakeholder, according to data compiled by Bloomberg.
Commenting on Musk’s tweets clarifying the reason for the sale, Gene MunsterManaging partner of Loup Ventures, said he puts the probability that the billionaire will buy Twitter at 75%.
“I was shocked,” Munster said. “This will be a breeze for Tesla in the near term. In the long run, all that matters is delivery and gross margin.”
Musk’s $250.2 billion fortune is the largest in the world, according to the Bloomberg Billionaires Index, although his fortune has fallen by about $20.1 billion this year as Tesla shares tumble.
The automaker’s shareholders approved a three-for-one stock split last week, a move designed to attract a larger number of retail investors. Tesla’s better-than-expected second-quarter earnings were a breeze, along with landmark US legislation that includes tax credits for electric vehicle purchases and loans to companies. The company built a clean car factory.
Musk privately tweeted that Tesla will start shipping its Semi trucks later this year, followed by Cybertruck in 2023. He previously said both will go into production next year, along with a new Roadster model.

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