Do You Know Elon Musk Sells Tesla Shares Despite reports that he had sacked some of Twitter’s top ad executives, Elon Musk has been selling a large chunk of his shares in Tesla. He is said to have sold nearly $3.95 billion worth of stock to avoid a potential selloff, if he went ahead with his plans to buy the company.
Elon Musk Sells Tesla Shares sold to avoid selloff in case he goes ahead with his aborted deal to buy Twitter
Earlier this month, Tesla CEO Elon Musk walked away from a $44 billion deal to take Twitter private. Despite the deal’s failure to materialize, the Tesla stock craze has continued, with shares jumping more than 35 percent since May’s low. And in the midst of the turmoil, the company has beaten Wall Street estimates by releasing better-than-expected second-quarter earnings.
Musk’s lawyers have filed a subpoena against Twitter, Goldman Sachs and other advisers in a dispute over the company’s $44 billion acquisition. Musk is also accusing Twitter of holding back crucial information, including the number of active users of its service. He also said that the social network was plagued with spam bots and fake accounts.
Tesla’s shares have gotten a boost from broader gains in US stocks. However, Tesla’s stock has not done much to recoup the losses that have plagued it since it first hit the public domain in 2006. The company has lost $600 billion in market cap since November of 2021.
Tesla shares have gotten their fair share of kudos for the better-than-expected second quarter. However, the company’s stock is still down about 20 percent from its peak. This could be related to the fallout from the Twitter deal.
The biggest question is, will Musk re-enter the fray in time to avoid further losses? In the past 10 months, Musk has sold $32 billion worth of Tesla shares, and he still owns a little over 14 percent of the company.
Elon Musk Sells Tesla Shares: sold $3.95 billion worth of shares
Earlier this week, Tesla CEO Elon Musk sold a whole lot of the company’s stock to raise cash for his $44 billion acquisition of Twitter. He sold 19.5 million shares, which is not too shabby considering he is still the world’s richest man. However, what exactly were these shares worth?
While a block of shares worth a whopping $15.4 billion was sold earlier this year, the sales of the last few days have been much smaller. The sales represent just under 4% of Musk’s total holdings. The reason is he had to sell three times as many shares as he had to raise the cash. Thankfully, he has some help from some of his equity partners.
As the newest member of the Twitter family, Musk has had to make some pretty drastic changes to the social media platform. He cut multiple staff members, announced plans to charge $8 a month for verified accounts, and launched Twitter Blue, an $8 a month subscription service in the U.S. The company lost $270 million in the quarter ending June 30.
For a company whose business model is based on advertising, you can imagine the competition is stiff. Nevertheless, the company has managed to keep its market cap below $600 billion for the first time in years.
Elon Musk Sells Tesla Shares: laid off some of Twitter’s top ad executives
Almost a week after being taken over by billionaire Elon Musk, Twitter announced layoffs of over 3,700 employees. The mass layoffs come as advertisers are scaling back social media companies, and major advocacy groups are calling on advertisers to abandon Twitter.
The cuts are expected to hit engineering and marketing. However, Musk has framed the layoffs as necessary due to cost challenges. He directed Twitter teams to find $1 billion in annual infrastructure cost savings.
Elon Musk also fired twenty employees who posted critical messages about him on internal Slack channels. He said he would be sharing more information next week.
The company also sent an email to its employees announcing the layoffs. It noted that layoffs would happen by 9 am PT on Friday. The email also stated that company offices would reopen on Monday. However, employees were asked to confirm their work at the new Twitter by 5 pm ET. If they do not, they will receive three months of severance pay.
Twitter has also been under heavy scrutiny from US lawmakers. The company is facing allegations of violating state and federal labor laws, and experts in misinformation have warned that mass layoffs are bad for marginalized groups.
Major advocacy groups, including the NAACP, Anti-Defamation League, Public Citizen, and Color of Change, have called on advertisers to abandon Twitter. They’ve also pushed for Twitter to protect content moderation standards. They’re also concerned about Twitter’s ability to support elections.