Elon Musk sold more Tesla (TSLA) shares valued at $3.9 billion, according to Tesla, and the CEO is probably using the proceeds to pay for his Twitter purchase, which is now a total waste of money.
Musk began to sell shares in Tesla for billions of dollars over the last year, breaking a promise he had made for years that he would be “the last one to sell Tesla.”
We then discovered that part of the reason for his change of heart was to raise money for his pricey $44 billion purchase of the social media company Twitter.
When we first learned that Musk had sold another sizable $6.9 billion piece of his Tesla (TSLA) holdings, in August, he said that he was “done selling Tesla stocks” in order to acquire Twitter.
However, a week after formally purchasing the business and supposedly facing severe revenue problems as a result of advertisers stopping their platform expenditure, we now discover that Musk is once again offloading Tesla shares.
Tesla has reported in a recent SEC filing that Musk sold about 20 million shares for $3.9 billion in the previous few days on the open market.
On Friday, there were a whopping 9.6 million shares, valued at over $2 billion. On Monday, there were almost 5 million shares, valued at over $1 billion, and another 4.4 million shares, valued at $850 million.
Tesla has lost around 30% of its value throughout this time period as a result of Musk’s push to sell the shares; this loss of value is more than Musk’s whole $44 billion purchase of Twitter.
Again, Musk demonstrates that he will “be the last one to sell Tesla,” unless it is to purchase a social networking site that is a total waste of time.
In some ways, I support what he is attempting to do with Twitter, but I also have serious reservations about his suitability for the job. He is now too controversial a person to serve as the leader of a platform that seeks to unite people.
And what I was most afraid of is really happening: this is hurting Tesla’s efforts to quicken the global switch to renewable energy.
Despite his amazing achievements at Tesla and SpaceX, Musk’s reputation is rapidly deteriorating due to this Twitter scenario and his response to it.