Billionaire and CEO of Tesla are in the process of acquiring the microblogging Twitter website for $ 44 billion.
It is a promise that will delight Tesla (TSLA) - Fans and investors.
After days of wondering about their hero Elon Musk's intentions for Tesla, they are now unable to breathe. Tech tycoon, whose power has been in use since early April on Twitter (TWTR) - has recently made a huge commitment. He recently promised that he did not plan to sell Tesla stock after a recent trade.
"There are no more TSLA sales scheduled for today," the billionaire wrote on Twitter on April 28, in response to a post from the Whole Mars Catalog account, indicating that Musk had recently sold some of his 173 million Tesla shares .
This commitment is significant because it came at a time when the serial entrepreneur was officially reaching an agreement with Twitter executives to acquire a social media platform at a cost of $ 54.20 per share of an estimated $ 44 billion transaction. Musk has promised to keep Twitter a secret once the deal is finalized.
Musk Sells Tesla Shares 4.4 Million For $ 4 Billion
For days, Tesla investors and the financial community wondered how Musk planned to fund the project. His fortune is estimated at $ 252 billion, according to the Billionaires Index, but it is not liquid. His fortune is based on his shares in Tesla and his share in the aerospace company SpaceX.
Musk was able to secure $ 25.5 billion in debt and loans and provides a 21 billion equity commitment. This latest piece of work has personally confirmed that he can sell Tesla shares.
Done. The world's richest man sold 4.4 million Tesla shares on April 26, according to a document filed with the Securities and Exchange Commission late Thursday. The report shows that Musk made 30 different transactions at a price ranging from $ 904 to $ 933.63. In all, it has raised about $ 4 billion, according to statistics.
On April 26, Tesla shares closed at 12.18% at $ 876.42. Since then, Tesla shares have remained relatively stable. They closed for $ 877.51 on April 28.
Musk's commitment suggests he will once again focus on Tesla, who has for weeks now been on the move despite strong results in the first quarter.
"Tesla shareholders have expressed concern that Elon [Musk] is doing so many things at once," said Scott Sheridan, a marketing expert, and CEO of niche investment brokerage firm Tastyworks. "And shareholders may be concerned that depending on what you do with Twitter, they may block potential car buyers."
Musk is involved with a number of companies, who rely on him to do their part in their respective fields. Apart from Tesla, he is the CEO of SpaceX, which owns Neuralink and The Boring Company.
But Tesla is Musk's favorite. The tech tycoon is the builder of the success of the team that was about to collapse in 2019 when it had a hard time securing the production of the Model 3, an entry-level car.
The automaker is currently experiencing a cocktail of negatives like the entire automotive industry: supply chains are disrupted by the epidemic, chip shortages continue, and rising prices for immature items, such as nickel - essential for batteries - are nowhere to be found. China, for example, has imposed the closure of Shanghai since the end of March. Tesla's factory in Shanghai serves the local, Asian and European markets as well.
