Image source: Inside EVs
Elon Musk is well-known for various activities, but he is primarily recognized as the CEO of the famed electric car company Tesla.
More than 22 million additional shares of Musk’s company, worth roughly $3.6 billion, were just sold.
The information was revealed in a financial file that was made public on Wednesday evening.
According to documents filed with the Securities and Exchange Commission, the transactions took place this week between Monday and Wednesday.
Elon Musk had his hands full with Tesla and SpaceX before assuming control of the well-known social media platform Twitter.
He tweeted the following on April 29 to inform his followers of certain developments about the stock of the electric vehicle manufacturer:
“No further TSLA sales planned after today.”
VerityData, a financial analysis organization, reports that Musk has already sold 94,202,321 shares in 2022.
The average price per share was $234.46, resulting in pre-tax earnings of about $22.93 billion.
Director of research at VerityData, Ben Silverman, stated:
“Musk’s prior sales going back to November 2021 were expertly timed, so Tesla shareholders need to pay attention to Musk’s actions and not his words – or lack thereof when it comes to his recent selling.”
Elon Musk, however, persisted in selling a portion of his Tesla assets.
The CEO sold a sizable amount of his shares after deciding to purchase Twitter for $44 billion.
Musk purchased Twitter in late October.
Elon Musk was no longer the richest person in the world earlier this week.
According to Forbes and Bloomberg, Bernard Arnault, the CEO of the luxury goods conglomerate LVMH, has ascended to the world’s richest person title.
Despite the decline, Refinitiv, a source of financial market data, reported that with a 13.4% stake, he remains Tesla’s largest stakeholder.
Days after assuming control of Twitter, Musk disclosed in November that he had sold 19.5 million shares of Tesla, totaling $3.95 billion.
The Tesla CEO is now valued at $174 billion, while Arnault increased his wealth to roughly $191 billion.
Despite having a well-known brand in the industry, Tesla had one of the worst stock performances in 2022 among the most prominent automakers and tech firms.
Investors are concerned that Musk’s purchase of Twitter has been consuming most of his time.
The value of Tesla stock, traded on the New York Nasdaq index, closed below $500 billion on Wednesday.
The shares last fell to a comparable level in 2020.
Tesla’s value exceeded an astounding $1 trillion last year but has since fallen in recent months.
In October, Elon Musk finished taking control of Twitter.
He has now concentrated his attention and efforts on the social media network.
Musk raised billions of dollars for the purchase of Twitter by selling shares of Tesla.
The transactions caused the shares to decline as a result.
After some back and forth between the corporation and the CEO of Tesla, the Twitter agreement was finalized.
During that time, Musk tried to back out of the agreement before deciding to buy the shares of his own firm instead.
Some people think the takeover’s distraction caused Tesla’s stock price to decline.
Investors are also worried that, given the sluggish economy, demand for the company’s electric vehicles may be slowing down.
Additionally, increased borrowing rates have deterred customers and other businesses from expanding their selections of electric vehicles.
In addition to the previously mentioned issues, Tesla suffered from recalls, regulatory inquiries into crashes, and the autopilot feature of the models.
Tesla stock has been declining throughout 2022.
However, when Elon Musk assumed control of Twitter, things changed drastically.
Tesla stock fell 2.6% on Wednesday to settle at $156.80.
The company’s market capitalization decreased as a result to $495 billion.
As of Wednesday’s close, Tesla shares have also decreased by 55% year to date.