Elon Musk sells nearly $4 billion in Tesla stock after agreeing to buy Twitter 2022-04-28 22:11:00

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Elon Musk

Sold nearly 4 billion dollars of

Tesla company

stocks in two days After approval to buy

Twitter company

for $44 billion, according to regulatory filings announced late Thursday.

Tesla’s CEO reported selling a total of more than 4.4 million shares on Tuesday and Wednesday at prices between about $870 and $1,000 per share, filings show.

Mr. Musk is the largest shareholder in Tesla and owns roughly 17% of the electric car maker, or more than 172 million shares, ahead of this week’s sales, according to FactSet.

he is on the hook to get $21 billion in cash to fund the Twitter deal. This financing plan also includes borrowing $12.5 billion in loans backed by more than $62.5 billion of Tesla stock he owns. Tesla and many banks have been put in place The rules that require him To offer more guarantees if the company’s stock price drops.

Mr. Musk tweeted Thursday: “No more TSLA sales planned anymore.”

The Tesla boss did not immediately respond to a request for comment about whether he sold shares in the company on Thursday.

Mr. Musk has a net worth of $252 billion, according to the Bloomberg Billionaires Index, making him the richest person in the world. But much of his fortune is tied to his companies, which include Tesla and Space Exploration Technologies Corp. or SpaceX. Mr. Musk, who receives stock payouts and does not accept a cash salary from Tesla, has sometimes described himself as financially poor.

As of last year, more than half of Musk’s Tesla shares — or roughly 88 million shares — were pledged as security to secure personal debt, according to an August regulatory filing.

Mr. Musk was for many years reluctant to part with Tesla shares. However, it is Sold more than 16 billion dollars Last year, most of it was to pay taxes owed on a large slice of the vested stock options he exercised before they expired this year.

Payment mixture

Elon Musk pays for Twitter in part with his own money, the rest with a combination of an acquisition loan and a loan against his Tesla stock.

Where Mr. Musk gets $46.5 billion to buy Twitter

$12.5 billion marginal loan for Tesla

$12.5 billion marginal loan for Tesla

$12.5 billion marginal loan for Tesla

$12.5 billion in margin

loan for tesla

$12.5 billion in margin

loan for tesla

Selling shares could weaken Mr. Musk’s control of Tesla. Companies like

Facebook

parents

ID pads company

And the father of Google

the alphabet company

It has multiple classes of stock, giving founders supervisory power over common shareholders. Tesla lacks such a chassis.

In addition to the shares he owns, Mr. Musk owns tens of millions of vested Tesla stock options. He’s ready to receive billions of dollars worth of additional stock options after the electric car maker Record quarterly profit advance this month.

These payments are part of a huge 2018 pay package This rewards Mr. Musk when Tesla reaches certain performance metrics.

Shares in Tesla, the world’s largest auto maker by value, are down nearly 19% since the last trading day before Mr. Musk revealed his stake on Twitter.

write to Rebecca Elliott in rebecca.elliott@wsj.com

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It appeared in the April 29, 2022, print edition as “Musk sells $4 billion in Tesla stock after Twitter deal.”



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