Tesla Chief Executive Elon Musk sold nearly $4 billion worth of shares in the electric car maker just days after agreeing to buy Twitter.
The sale has led to speculation that it will help fund its planned $44 billion purchase of the social media platform. Twitter’s board agreed on Monday to accept a takeover offer from Musk.
Tesla shares fell sharply earlier this week on concerns that Musk would sell part of his stake in the automaker to fund the deal. However, he tweeted that he had no plans to sell any further shares in the automaker.
Documents filed with the US Securities and Exchange Commission showed that Musk sold a total of 4.4 million shares of Tesla on Tuesday and Wednesday. The electric car maker’s share price fell 2.6% in after-hours trading.
It was his first sale of Tesla stock since Elon Musk sold $16.4 billion of shares in November and December last year. This came after he asked his nearly 89 million Twitter followers if he should sell 10% of his stake in the electric car maker. Tesla shares are down about 20% since Musk revealed earlier this month that he had bought a 9.2% stake on Twitter.
On Tuesday alone, more than $125 billion was wiped off the automaker’s market value after the social media company’s board accepted its takeover bid.
Musk said he would commit $21 billion of his assets to help fund the $44 billion deal. Investors were worried he might have to sell Tesla stock to help finance the acquisition.
Musk is the richest person in the world, with an estimated net worth of nearly $250 billion, mostly due to his stake in Tesla. He also has a more than 40% stake in rocket company SpaceX, which is valued at $100 billion.
Translated matter from BBC Business.
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