Is Elon Musk Selling Tesla Stock?
Update: Elon Musk sold $3.95 billion of Tesla stock in November 2022 after he finalized the Twitter deal.
Elon Musk may have to sell up to $10 billion worth of Tesla stock by the end of October 2022 to fund his purchase of Twitter. It looks like the Twitter deal will be finalized by Friday, October 28th according to Elon Musk.
Is Elon Musk Going to Sell Tesla Stock?
Elon Musk must raise enough capital to purchase Twitter for around $43 billion dollars. He already sold $7 billion worth of Tesla stock in August 2022 but doesn’t have enough capital yet to finalize the deal.
Is Elon Musk Done Selling Tesla Stock?
That means Elon Musk isn’t done selling Tesla stock yet but I don’t think TSLA shares will drop that much. Much of his preplanned Tesla stock sale has already been priced in plus TSLA stock is down 44% YTD.
According to Insider, Elon Musk has lined up around $12 in debt financing but needs to raise another $32 billion to close the deal. That means Elon Musk may dump some more Tesla shares to end the Twitter saga once and for all.
What Happened Last Time Elon Musk Sold Tesla Stock?
Elon Musk sold TSLA shares in early August 2022 when TSLA was trading at around $300 per share. As of now, TSLA stock has crashed below $200. It doesn’t look good for TSLA bulls if history repeats itself.
Elon is known for selling at market tops so be prepared for more downside risk in the future.
|
|
|
|
|
|
|
|
Fees:
$0
|
Fees:
$0 (65 cents per options contract)
|
Fees:
$0
|
|
Account Minimums:
$0
|
Account Minimums:
$0
|
Account Minimums:
$0
|
|
Promotion:
Up to $600 in Transfer Bonuses
|
Promotion:
$100 for New Accounts
|
Promotion:
Up to 12 free stocks valued $30,600
|
Should Tesla Shareholders Be Worried About Elon Musk Selling TSLA Shares?
I don’t expect much of a reaction to Elon Musk’s TSLA stock sale in the current market environment. Tesla continues to grow its revenue and net income despite Elon Musk’s antics on Titter and social media. The company could be worth more than Apple and Saudi Aramco combined in the future if everything goes as planned.
Does it matter that Elon Musk is selling some of his TSLA stock? Not really if you ask me because CEOs sell shares at the time to fund different projects. Elon Musk is not an all-in 100% investor like Warren Buffett. He is well known for managing several different companies at once including Tesla, SpaceX, The Boring Company, etc.
As long as Tesla grows its EPS and net income then I’m not worried about Elon Musk selling Tesla shares. If the business starts tanking then Tesla shareholders should be worried. So far, so good.
