December 7, 2022

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Elon Musk sells $3.95 billion in Tesla stock after Twitter deal

Elon Musk sells $3.95 billion in Tesla stock after Twitter deal

November 8 (Reuters) – Tesla Inc (TSLA.O) Regulatory filings show that CEO Elon Musk has sold $3.95 billion worth of shares in the electric car maker, days after closing a $44 billion deal for Twitter Inc.

The latest sale has brought the total Tesla shares sold by Musk to about $36 billion since November last year, making him own nearly 14% of the world’s most valuable automaker, according to Reuters calculations.

The filings published by the US Securities and Exchange Commission on Tuesday showed that Musk emptied 19.5 million shares between Friday and Tuesday.

Tesla did not immediately respond to a Reuters request for comment on the purpose of the share sale.

Analysts widely expected Musk to sell more Tesla shares to fund the Twitter deal, even though the world’s richest man confirmed several times that he finished selling Tesla shares.

He sold $6.9 billion worth of Tesla stock in August and raised about $20 billion in cash through multiple stock sales from November of last year to August.

This would have left him needing to raise an additional $2 billion to $3 billion to fund the Twitter deal, according to Reuters calculations.

The billionaire last month ended the deal with $13 billion in loans from banks and $33.5 billion in equity commitments, including his 9.6% stake in Twitter worth $4 billion and $7.1 billion from investors including Oracle Corp. (ORCL.N) Co-founder Larry Ellison and Saudi Prince Al-Waleed bin Talal.

Tesla shares rose 0.7% to $192.64 in pre-market trading. The company has lost nearly half of its market value since Musk took to Twitter in April.

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Additional reporting by Akriti Sharma in Bengaluru and Hyunju Jin in San Francisco; Editing by Sherry Jacob Phillips and Aaron Coeur

Our criteria: Thomson Reuters Trust Principles.