Elon Musk raised $ 8.5 billion from the sale of part of his stake in Tesla, strengthening his financial position ahead of his planned purchase on Twitter.
The sale came between Tuesday and Thursday after a Twitter board agreed to Musk’s approach to $ 44 billion in cash.
The electric carmaker’s stock price fell after news of the deal, amid fears of potential Musk stock sales to finance the acquisition, although it came amid a sharp decline in the broader stock market.
Musk tried to overcome concerns that the sale would be the beginning of a series of sales, he wrote on Twitter after the first requests were published on Thursday: “There are no more TSLA sales planned after today. Regulatory documents revealing $ 4.5 billion in sales came late Thursday and the rest early Friday.
Musk did not say how long he would delay selling more Tesla shares or whether his plans would change in the future, leaving open the question of whether or when he will return to the market to raise more money. The terms of the Twitter deal require it to come out with about $ 21 billion in cash, although it is not expected to end for another six months.
Under the terms of an agreement with securities regulators in 2018, any of Musk’s Twitter messages that could affect Tesla’s share price must be verified by one of the company’s lawyers. Musk is fighting for the agreement to be overturned in court, but this week a judge ruled against his request.
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Sales of nearly 9.7 million shares, ranging in price from $ 822 to $ 999 per share, were the first from Tesla’s boss after a sales surge late last year that raised more than $ 16 billion.
Some of last year’s sales were triggered by a large personal tax bill as a result of the exercise of some of Musk’s stock options at Tesla. He also promised to sell part of his stake after conducting a survey on Twitter to see if he needed to make some capital gains to pay more taxes.
Shares of Tesla rose 4.7% on Friday morning to $ 918.72 after a volatile trading week.
The Twitter deal allows Musk to attract other supporters, potentially leaving him on the hook for just part of the $ 21 billion investment he has promised. However, despite discussions with private investment groups, he has not yet reached an agreement with other investors.
Musk also promised to give part of his stake in Tesla as a $ 12.5 billion loan guarantee to help finance the acquisition of Twitter, with banks supporting another $ 13 billion in loans to be taken by the company itself.
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