Elon Musk Has Sold Further Tesla Shares for $3.9 Billion in Total

Elon Musk Sold Tesla Shares
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According to a series of filings that were submitted to the Securities and Exchange Commission today, Elon Musk has reportedly sold more Tesla shares for $3.4 billion in total. This year, Musk has divested himself of about $20 billion worth of Tesla shares, the majority of which went toward financing his $44 billion purchase of Twitter.

In April, Musk sold shares for $8.4 billion, and then he sold shares worth $6.9 billion in August. Following the sales he completed in April, he said in a tweet that there would be “no additional TSLA sales planned after today.” Then, after the sales that took place in August, he stated once more that he was finished selling, and that those shares were offloaded in case he had to buy Twitter. At the time, he was embroiled in a lawsuit for attempting to back out of the deal, so he was saying this while he was already involved in the lawsuit.

Twitter has been experiencing some difficulties. Because of the shift in leadership, a number of prominent advertisers have temporarily suspended their expenditure on Twitter. A prominent advertising executive, Sarah Personette, resigned the day after Musk gained control of the company. Kara Swisher from Vox Media stated that Musk met with several advertisers personally, and the results of the discussion were so poor that some executives decided to move their money away from Twitter during the meeting. Advertisers have been especially wary as a result of some remarks and actions taken by Musk in relation to moderation on Twitter. Twitter doesn’t make enough money to be viable, thus the overwhelming bulk of its income comes from advertising. It will also be responsible for making an annual interest payment of around one billion dollars on the debt that Musk incurred in order to purchase the company.

It is possible for Musk to ensure that his debts are repaid regardless of the success of Twitter’s advertising business by paying for the loans himself. William Cohan at Puck has hypothesized that Musk footing the bill for the interest payments himself is a plausible scenario. However, in order to accomplish this goal, Musk will need cash, and in order to get cash, he will have to sell some of his Tesla shares.

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