Tesla: Elon Musk sold nearly $4 billion worth of shares

These transfers of titles of the automaker must allow the richest man in the world to finalize the purchase of the social network Twitter.





SourceAFP


To finalize the takeover of Twitter, Elon Musk sold nearly $4 billion worth of shares in the automaker Tesla.
© ODD ANDERSEN / AFP

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Elon Musk sold almost $4 billion worth of car manufacturer Tesla between Friday November 4 and Tuesday November 8, when he must finance the takeover, a little over a week ago, of Twitter for $44 billion of dollars. The three transactions relate to a total of more than 19 million shares, or just over 4% of the total number of securities owned by Elon Musk, and 0.6% of the total number of shares in circulation, according to forms filed with of the American stock market policeman (SEC).

This is not the first operation of its kind carried out by the boss of Tesla in view of his takeover of Twitter since Elpn Musk has already sold 15.5 billion dollars in shares. These securities sales should allow it to partially finance the takeover of the microblogging platform, which is done in cash for 27 billion dollars, while a good part of the balance is financed by loans backed by Twitter which will ensure the financial burden and reimbursement.

The three phases of selling had an impact on the share price, which rose in three sessions from $222.50 a share at the opening on Friday to $191.30 at the close on Tuesday, a down 14%. On Twitter, several small Tesla holders were worried about these repeated sales of securities and their consequences on the share price, but also about the excessive attention paid by Elon Musk to Twitter to the detriment of the automotive group.

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$4 million in daily losses

“I continue to do a lot of work for Tesla! I was at our engineering office in Palo Alto (California, editor’s note) until late at night on Thursday,” retorted Elon Musk on his Twitter account. The billionaire took control of the social network on October 28, putting the same occasion a premature end to what was announced as a long legal battle with the board of directors of the group, after having announced to buy Twitter for 44 billion dollars then to give it up.

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As soon as the operation was finalized, Elon Musk dismissed all of the managers as well as 50% of the group’s employees, and announced the launch of a completely revamped Twitter Blue subscription offer, which makes it possible to obtain certification and various benefits for $8 per month. The objective is to diversify its income while the platform depends 90% on advertising and loses, according to Elon Musk, 4 million dollars a day.

READ ALSOInside the mind of Elon Musk, the new boss of Twitter

A financial situation that has worsened since its takeover, after several large advertisers suspended their spending on Twitter. Critics have come from all sides since the takeover of Twitter, including the UN which urged Elon Musk to uphold human rights on the social network. On Tuesday, MEPs expressed their concern, demanding that Elon Musk be heard by the European Parliament in order to “learn more about his intentions” and remind him of his obligations.


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