Musk sells Tesla shares value $8.5 bln, says no extra gross sales deliberate

Tesla Inc Chief Executive Officer Elon Musk offered $8.5 billion value of shares within the electrical car maker, U.S. securities filings confirmed, in gross sales seemingly geared toward serving to finance his deliberate buy of Twitter Inc.

Musk mentioned in a tweet on Thursday that there are “no further TSLA sales planned after today”. He offered about 9.6 million shares this week, in accordance with the filings on Thursday and Friday, equating to five.6% of his stake within the firm.

The sale got here after Musk on Monday clinched a deal to purchase Twitter for $44 billion money in a transaction that may shift management of the social media platform populated by tens of millions of customers and international leaders to the world’s richest particular person. Musk’s web value is $268 billion, in accordance with Forbes.

As a part of the deal, Musk mentioned he would supply a $21 billion fairness dedication.

It isn’t clear how he’ll cowl the remaining $17 billion of fairness financing. Musk holds a 43.61% stake in unlisted rocket firm SpaceX that’s reportedly valued at $100 billion.

Musk has been searching for companions to cut back his fairness contribution to the deal, an individual aware of the matter instructed Reuters, including that it’s removed from sure such a accomplice will emerge.

This is his first Tesla inventory sale since he offloaded $16.4 billion value of shares in November and December after polling Twitter customers about promoting 10% of his stake within the electrical automotive maker.

Musk mentioned on Twitter that he would pay greater than $11 billion in taxes in 2021 attributable to his train of inventory choices set to run out this yr.

Some merchants have fretted this week that Musk might not have the funds for sitting round to fund his $21 billion money contribution and will stroll away from the deal, weighing on Twitter shares.

Tesla shares have fallen practically 20% since Musk disclosed his over 9% stake in Twitter on April 4. Investors have expressed concern that Musk might need to promote Tesla shares to fund his fairness contribution to the takeover supply.

As a part of the Twitter deal, Musk additionally took out a $12.5 billion margin mortgage tied to his Tesla inventory. He had already borrowed in opposition to round half of his Tesla shares.