Tesla chief executive Elon Musk has actually sold practically $4bn (₤ 3.2 bn) worth of shares in the electrical vehicle maker, simply days after he accepted purchase Twitter. The sale has caused speculation that it will help to finance his organized $44bn buyout of the social networks platform.
Twitter’s board settled on Monday to accept a takeover deal from Mr Musk. Shares in Tesla fell sharply previously today over worries that Mr Musk would sell part of his stake in the carmaker to fund the offer. However, he tweeted that he had no strategies to offer anymore of his shares in the carmaker. Filings to the United States Securities and Exchange Commission revealed that Mr Musk offered a total of 4.4 million Tesla shares on Tuesday and Wednesday. The electric car-maker’s share cost was 2.6% lower in after-hours trade. It was his first sale of Tesla shares given that he unloaded $16.4 bn worth of stock in November and December in 2015.
That followed he asked his 83 million Twitter followers whether he must sell 10% of his stake in the electric automobile maker.
Tesla’s shares have fallen by around 20% because Mr Musk revealed earlier this month that he had bought a 9.2% stake in Twitter. On Tuesday alone, more than $125bn was rubbed out the car maker’s stock exchange worth after the social media company’s board accepted his takeover deal. Mr Musk said he would devote $21bn of his possessions to assist fund the $44bn deal. Financiers were concerned that he might have to offer Tesla shares to help money the takeover. Mr Musk is the world’s richest individual, with an approximated net worth of practically $250bn, mainly due to his Tesla stake.
He also has a more than 40% stake in the rocket business SpaceX, which is approximated to be worth $100bn.