Musk sold 22 million Tesla shares yesterday, valued at around $3.6 billion. If you are wondering why the sudden sale? Is it because of his latest extravagant purchase of Twitter? There’s no clarity to the report as of now. Musk secured financing from a bunch of banks and was even assured of selling his Tesla shares to acquire capital for the buyout.
He did exactly what he intended to do. Twitter wasn’t cheap to gain ahold of at $44 billion. The SEC filing revealed that he had already sold 19.5 million shares of Tesla worth $3.95bn. But the sudden sale of 22 million shares again sparked questions about Musk’s vision for the company.
Musk sells Tesla shares again. But why?
Tesla’s share price has plummeted a lot since last year. Musk has a habit of selling shares, but his recent sale is confusing investors. Tesla’s share price stood at $156.80, which is 55 percent low if you compare it to the last year. Investors usually unload massive chunks of shares as a calculated move, but this is not the first time for Musk. According to NBC News, he has sold around 94 million Tesla shares this year, with an average price of $243.46 per share.
Elon Musk’s electric car company’s share price began climbing in 2020 and even reached an all-time high of $407 in November 2021. But since then, it has been steadily declining and now stands below the $200 mark. Some investors also believe that Musk is focusing more on making Twitter better while leaving Tesla in hindsight.
This has been a slow year for EVs as well. The looming recession and high inflation are already weakening consumers’ pockets, which means a decline in demand. Musk once spend most of his time talking about Tesla or SpaceX on Twitter but now is deeply invested in the social platform’s profitability. He even deployed the half-assessed measures, such as a verified checkmark for $8, which backfired heavily. Yesterday, Twitter relaunched the feature after significant improvements and stringent verification processes. Only time will tell why Musk is unloading Tesla’s stock.