Elon Musk sells USD 3.6 Bn worth of Tesla stock, amid poor performance

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Tesla CEO Elon Musk has reportedly sold an additional 22 million shares in Tesla, valued at USD 3.58 billion. According to a filing with a US financial authority, the shares were sold this week.

With this sale, Mr. Musk has now sold roughly USD 40 billion worth of Tesla stock in the previous year. However, the newest share sales motivation was not made public.

Just days after successfully completing a USD 44 billion buyout of the social media giant Twitter, Mr. Musk disclosed last month that he had sold 19.5 million Tesla shares worth USD 3.95 billion. Sources claim that even with a 13.4% stake, he is still Tesla's largest stakeholder

Investors are concerned that Elon Musks acquisition of Twitter is taking his focus off of Tesla, which has been one of the poorest-performing stocks among big automakers and internet firms this year.

Its important to note that Mr. Musk lost his position as the richest person in the world this week. The CEO of Louis Vuitton SE, Bernard Arnault, is currently the richest person in the world with an estimated net worth of USD 191 billion, according to Forbes. Elon Musk is now worth USD 174 billion.

For the first time since 2020, the value of Tesla shares traded on the New York markets heavily weighted Nasdaq index ended below USD 500 billion on Wednesday i.e., 14th December.

The corporation had a value of more than USD 1 trillion at the end of last year, but in subsequent months, its value declined.

In order to finance his Twitter acquisition, Mr. Musk sold shares of Tesla for billions of dollars, which assisted in the share price decline.

Interestingly, investors are also worried that demand for the companys electric cars may wane as the economy weakens, consumer reluctance is increased by higher financing charges, and other automakers raise their electric vehicle offerings. Additionally, Tesla has been harmed by recalls, government investigations into accidents, and its autonomous system.

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https://www.bbc.com/news/business-63981767