Following news that CEO Elon Musk sold $3.95 million worth of Tesla stock, the company’s shares fell to their lowest level in almost two years. On Wednesday, shares ended the day at $177.59, the lowest price since November 23, 2020.
The New York Post reports that Musk’s most recent share transaction added to concerns about how his purchase of Twitter might affect the most valuable automaker in the world. Investor worries included whether the billionaire would be distracted from operating Tesla or reallocate resources to the social media firm after his recent acquisition of the platform. Additionally, some investors were concerned about how Tesla’s sales and brand would be affected and possible pressure from nations attempting to regulate online speech.
Musk has sold roughly $36 billion worth of Tesla stock since last November despite claiming he would not sell any more of his shares. In a conference call last month, Musk dismissed investor fears about lower demand after the electric vehicle manufacturer’s sales below Wall Street estimates and stated that he anticipates Tesla to be worth more than Apple and Saudi Aramco combined.
After reaching a record high on November 4 of last year, Musk began selling shares. The price has since decreased by more than 50%. According to documents released by the Securities and Exchange Commission late Tuesday, Musk sold 19.5 million shares between Friday and Tuesday. While it’s unclear whether the sales were connected to the $44 billion Twitter takeover, analysts had anticipated Musk to sell more Tesla shares to raise funds.
Musk closed the Twitter deal last month with $13 billion in bank loans and a $33.5 billion equity commitment, including $7.1 billion from investors like Oracle co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal.
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