Elon Musk, the CEO and founder of Tesla, has sold 19.5 million shares of the company. According to the Securities and Exchange Commission's filings, Musk has sold more than $3.95 billion worth of securities. Musk has not yet provided a justification for this sale. Tesla's stock, though, is still in poor shape. In the previous day, it dropped by 2.93%, and in the late hours, it dropped by an additional 0.68%.
Musk's Reason for the Shares Selling
Currently, Elon Musk is in charge of ensuring a smooth transfer of authority at the recently bought Twitter. Musk initially proposed paying $44 billion to acquire Twitter. This works out to $54.20 per share in pricing. Musk backed out of the agreement, saying Twitter had underreported its bot problem. Twitter sued Musk to compel him to accept the initial offer to purchase the business.
Musk was involved in a legal dispute with Twitter the last time he sold Tesla stock. He explained to his followers that the selling was a contingency plan in case Twitter required him to complete the transaction. He also said that it would be a while before he sold any more shares.
Since then, Musk has told the Twitter board that he intends to buy the company for the initial asking price. Along with the Twitter board, he dismissed the CEO, CFO, and numerous other senior personnel. After the acquisition, consumption was at an all-time high, but the corporation might be having financial trouble. United Airlines, Pfizer, and Audi are just a few of the well-known businesses who have stopped running their adverts on the site.
After the acquisition, Musk's tone toward content regulation underwent a noticeable change. He repeated multiple times that the company's moderation practices have not changed. The sale of Tesla shares could possibly be related to the macroeconomic slowdown.
Tesla liquidated a large portion of its Bitcoin assets for cash due to the uncertain economic climate. Both Musk and Tesla own a sizeable quantity of cryptocurrency. The question of whether Musk sells his cryptocurrency holdings after he sells Tesla shares becomes very important.
