Tesla Inc (NASDAQ: TSLA) CEO Elon Musk on Thursday confirmed the sale of 4.41 million shares in the electric vehicle firm, worth up to $3.9 billion, and said he does not plan to sell more shares.
What Happened: The billionaire entrepreneur sold shares in multiple transactions, possibly to fund his $44 billion acquisition of Twitter Inc (NYSE:TWTR).
Regulatory filings showed Musk sold shares at prices ranging from $872 to $976.74 in a set of five transactions.
“No further TSLA sales planned after today,” Musk wrote on Twitter, in response to a user who shared a link to regulatory filings.
No further TSLA sales planned after today
— Elon Musk (@elonmusk) April 29, 2022
Did Musk Sell More Shares? Musk may have likely already sold more shares to fund his $21 billion equity commitment, filings of which could surface later.
"Selling far less than $21 billion in Tesla shares implies Elon is likely bringing one or more equity partners into the deal or will sell other assets to satisfy the commitment. It also suggests Elon intends to fast-track the Twitter purchase rather than wait months to complete it," said GaryBlack, managing partner with investment firm The Future Fund.
Why It Matters: Musk's share sale comes amid his bid to buy Twitter and take it private.
The deal is, however, not yet complete as Twitter shareholders must approve it at the company's next annual meeting. It also must meet regulatory approval and other closing considerations.
Price Action: Tesla shares, which have plunged 20% in the past month, closed 0.45% lower at $877.5 on Thursday. Shares of the company are down about 27% year-to-date.
