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Elon Musk sold about 9.6 million Tesla (NASDAQ: TSLA) shares and raised about $8.5 billion. The head of the company said that the last sale took place on April 28 and no further sales are planned. It is worth bearing in mind that the submission of documentation may be within two days after the sale, so there is a possibility that new submissions will be published within the next two days.
Tesla CEO Elon Musk has filed documents with the US Securities and Exchange Commission indicating that he sold a significant amount of TSLA shares. In a total of eight fillings known to date, Musk has revealed that he has sold about 9.6 million shares, for a total of about $8.5 billion. This is the first sale since he sold $16 billion worth of TSLA stock last year.
Musk did not disclose the reasons for the sale, but it is assumed that this was done in order to acquire Twitter. Tesla's CEO said he was willing to put in $21 billion of his own capital to satisfy the deal. In addition, Musk pledged TSLA shares as collateral for a $12.5 billion margin loan from a group of banks. After accounting for collateral, he has about $13.2 billion in unpledged Tesla shares after his $8.5 billion sale.
On April 28, Musk tweeted that after the current day, he no longer plans to sell shares of the company. However, keep in mind that not all applications may be published at this moment. There is a possibility that filings about the sales from April 27 and 28 will appear later this week. Investors should take this into account so as not to be surprised later.
No further TSLA sales planned after today
— Elon Musk (@elonmusk) April 29, 2022
Most of Musk's sales came on Tuesday, when he sold 3.7 million shares. Thus, the riddle of a 12% decrease in the value of the manufacturer's shares during one trading session that day was solved. While the actual Twitter deal is due to close by October 24, it makes a lot of sense to Tesla that Musk has sold the stock now. Now the shareholders know that the head of the company has already received money from the sale, which means they can not worry that this can happen at any time in the future. Thus, the TSLA price movement can continue naturally.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
