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Days After Twitter's Acquisition, Musk Sells $3.95 Billion Worth Of Tesla Shares

Days After Twitter's Acquisition, Musk Sells $3.95 Billion Worth Of Tesla Shares
Days after completing his $44 billion acquisition of Twitter Inc., Tesla Inc. Chief Executive Officer Elon Musk has sold $3.95 billion worth of shares in the electric vehicle manufacturer, according to U.S. regulatory filings.
According to filings made public by the U.S. Securities and Exchange Commission, between Friday and Tuesday, Musk sold 19.5 million shares, causing his net worth to fall below $200 billion. exhibited by the Securities and Exchange Commission.
According to a calculation by Reuters, Musk now owns about 14% of Tesla following the most recent share sale.
The sale's motivation was kept a secret.
In order to finance the Twitter deal, analysts had widely predicted Musk to sell more Tesla shares in the most recent sale dump.
The richest man in the world, Musk, claimed in April that he had stopped selling Tesla stock. However, he continued to sell additional Tesla shares in August for $6.9 billion, claiming that the sale was made to cover the cost of the social media platform.
After selling a portion of his stake in Tesla, including the sales made last year, Musk, the richest man in the world, had about $20 billion in cash. According to a calculation by Reuters, this would have required him to raise an additional $2 billion to $3 billion to finance the takeover.
Since Musk's bid for Twitter in April, Tesla's market value has decreased by nearly half, and his personal wealth has decreased by $70 billion.
There were no comments from Twitter and Tesla on the issue.
After assuming control of Twitter last month, Musk took drastic action, firing half the staff and announcing plans to charge for blue check verification marks.
For the acquisition, the billionaire promised to contribute $46.5 billion in equity and debt financing, which would pay for the acquisition's $44 billion price tag and closing costs. Banks pledged to provide $13 billion in debt financing, including Morgan Stanley (MS.N) and Bank of America Corp..
Musk's $33.5 billion equity commitment included his $9.6% stake in Twitter, which is worth $4 billion, as well as the $7.1 billion he had raised from equity investors, including Saudi Prince Alwaleed bin Talal and co-founder of Oracle Corp. Larry Ellison.
In May, Musk attempted to back out of the agreement, claiming that Twitter had understated the number of spam and bot accounts using the platform. As a result, there were numerous court cases between the two parties.

Christopher J. Mitchell

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