Image source: Inside EVs
Elon Musk is known for many things, but his position as CEO of the famed electric car company Tesla is what most people know him for.
Recently, Musk raised roughly $3.6 billion by selling more than 22 million company shares.
The information was made accessible to the public on Wednesday night in a financial document.
According to documents provided to the Securities and Exchange Commission, the transactions took place this week between Monday and Wednesday.
Tesla
Elon Musk had a lot going on before acquiring control of the popular social media platform Twitter, including Tesla and SpaceX.
To inform his followers of any changes to the electric vehicle manufacturer’s stock, he tweeted the following on April 29:
“No further TSLA sales planned after today.”
A business that conducts financial analysis, VerityData, claims that Musk has already sold 94,202,321 shares in 2022.
The average share price was $234.46, and pre-tax earnings totaled around $22.93 billion.
Sales
Ben Silverman, VerityData’s research director, said:
“Musk’s prior sales going back to November 2021 were expertly timed, so Tesla shareholders need to pay attention to Musk’s actions and not his words – or lack thereof when it comes to his recent selling.”
However, Elon Musk persisted in his efforts to unload part of his Tesla assets.
The CEO decided to sell a sizable percentage of his shares after paying $44 billion for Twitter.
Late October saw Musk purchase Twitter.
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Wealth
Elon Musk’s position as the wealthiest person in the world was challenged this week.
According to Forbes and Bloomberg, Bernard Arnault, the CEO of the luxury goods company LVMH, has surpassed Musk in wealth.
He still has the most significant stake in Tesla, Refinitiv, a provider of financial market statistics and reports, with a 13.4% holding.
Only days after assuming control of Twitter, Musk claimed in November to have sold 19.5 million Tesla shares for a total of $3.95 billion.
The Tesla CEO’s net worth increased to $174 billion, while Arnault’s net worth jumped to nearly $191 billion.
Stock
Tesla’s stock performance in 2022 was among the worst among the most prestigious automakers and IT businesses, despite having a well-known brand in the industry.
Investors are concerned that Musk’s purchase of Twitter has monopolized most of his attention.
Tesla’s shares, which trade on the New York Nasdaq Index, closed under $500 million on Wednesday.
The last time the shares fell by this amount was in 2020.
Tesla’s value exceeded $1 trillion last year but has since fallen in recent months.
In October, Elon Musk took control of Twitter.
Now, only social media platforms are the focus of his attention and efforts.
Musk raised billions of dollars to purchase Twitter by selling Tesla stock.
The transactions caused a drop in the shares.
After considerable back and forth between the company and the CEO of Tesla, the Twitter agreement was eventually completed.
Musk tried to back out of the deal at the time before selling his company’s shares.
Some argue that the takeover’s diversion caused Tesla’s stock price to decline.
Investors also worry that the sluggish economy may result in reduced demand for the company’s electric vehicles.
Customers and other businesses have been deterred from expanding their lineups of electric vehicles by rising loan prices.
Tesla has encountered concerns with its model autopilot, regulatory inquiries into crashes, and recalls in addition to the issues already mentioned.
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Other notes
Tesla stock has fallen during the entire of 2022.
However, after Elon Musk became Twitter’s CEO, things substantially changed.
Tesla stock fell 2.6% on Wednesday to settle at $156.80.
The company’s market capitalization decreased as a result to $495 billion.
The price of Tesla stock has reduced by 55% year to date as of Wednesday’s close.
References:
Elon Musk sells another huge chunk of Tesla shares
Elon Musk sells $3.6 bn of shares in electric car maker Tesla
