Musk sells Tesla shares worth USD 3.95 Bn to keep Twitter deal afloat

By Ayushi Garg  | Date: 2022-11-09

Musk sells Tesla shares worth USD 3.95 Bn to keep Twitter deal afloat

Days after concluding the USD 44 billion acquisition of Twitter Inc., Chief Executive Officer of Tesla Inc. Elon Musk sold 19.5 million shares of the electric vehicle manufacturer accounting to USD 3.95 billion, on Tuesday i.e., 8th November, according to American securities filings.

Musk, the richest man in the world, had roughly USD 20 billion in cash after releasing a chunk of his ownership in Tesla and would have been obligated to acquire an extra USD 2 billion to USD 3 billion to bankroll the Twitter transaction.

For the acquisition, Musk promised to contribute USD 46.5 billion in equity and debt funding, covering the USD 44 billion acquisition cost as well as the closing charges. A total of 13 billion dollars in debt funding has been committed by banks, including Morgan Stanley and Bank of America Corp.

The most recent stock sale occurred as experts largely anticipated Musk to sell more Tesla stock. Musk has previously declared that when he finished selling shares in April and August, there would be no more transfers scheduled.

Since Musks offer for Twitter in April, Tesla's market value has fallen by nearly 50%, and his personal wealth has plummeted by USD 70 billion.

Just a few days after acquiring control of the social media company Twitter, Musk took decisive action, firing nearly 3,700 employees, but soon after he contacted many whom were too important to the reforms that the billionaire entrepreneur wanted to make. A class action lawsuit has been filed against the social media site as a result of this.

Moreover, Musk had also announced plans to price USD 7.99 for blue tick verification. However, to prevent any disruption during the US midterm elections, Musk is delaying the addition of verification check marks as its monthly subscription service.

 

Source credit:

https://www.reuters.com/business/autos-transportation/elon-musk-sells-195-mln-tesla-shares-worth-395-bln-sec-filing-2022-11-09/

About Author

Ayushi Garg     aeresearch.net

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

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