The sales were revealed Friday through Tuesday in a series of filings with the Securities and Exchange Commission late Tuesday night. They represent the first sale of Tesla stock by Musk since April, when he was Sold 9.6 million shares
and raised $8.5 billion at the time.
Musk’s filing did not reveal the reason for selling the shares. But after someone asked him on Twitter if he had finished selling Tesla stock, he answered “yes” and then cited the possibility of him being forced to buy Twitter as the reason for this latest sale.
“In the (hopefully unlikely) event that Twitter forced this deal* and some of the equity partners did not conclude, it is important to avoid an emergency sale of Tesla stock,” he said in his speech. tweet
But at the time he sold out Tesla (TSLA)
Share in April, said chirp
“No more TSLA sales planned after today.”
When someone else asked on Twitter on Tuesday if they would buy back Tesla posts if the Twitter deal didn’t close, they answered “Yes.”
Tesla shares have lost nearly 20% of their value so far this year, although they have rebounded 14% since then. Earning reporting
in late July. Tesla stock is up about 2% in pre-market trading. Twitter shares are up about 4%.
“This is the last thing Tesla investors wanted to see,” said Daniel Ives, technology analyst at Wedbush Securities. “The biggest fear was that Musk is selling more shares, and that’s just what happened. It’s a near-term punch. There is no explanation and this increases the uncertainty.”
Musk previously essentially sold Tesla stock when He needed to raise money to pay taxes
regarding the exercise of options that were due to expire. The April stock sales, shortly after the Twitter deal was struck, marked Musk’s first major sale of Tesla stock for reasons other than a looming tax bill.
Musk earned an average price of $869 per share for the shares he has sold in recent days. That’s below the average price of $883 per share on his Tesla sales in April, and well below the average of $1,046 he earned when selling 15.7 million shares late last year. This sale was to cover the expected Register personal income tax invoice
experienced as a result of exercising options that are set to expire.
Even with the latest stock sales, Musk owns 155 million shares of Tesla, and has options to buy nearly 100 million more at a fraction of current prices. The shares he owns, along with the options he has to buy other shares, give him control of about 20% of Tesla’s outstanding shares. The 7.9 million shares he just sold represent less than 3% of the stock and options he owns.