Elon Musk

The Securities and Exchange Commission (SEC) has in a new report disclosed that Elon Musk sold at least $3.95 billion worth of Tesla shares days after completing the $44 billion takeover of the social media company, Twitter. 

Why this matters 
Investors at Elon Musk’s Tesla are rumoured to have expressed concern that the billionaire is paying too much attention to his newly gained company, Twitter, at a time when there is increasing competition from GM and Ford. 

  • Also, the demand for the Tesla has reportedly dropped while its stock is down by 52 percent so far this year. Another concern is that Tesla’s market cap has also fallen below the $600 billion mark for the first time since June 2021. 

The big picture 
Elon Musk has sold his Tesla shares two times in the last six months; one in April when he sold $8.5 billion worth of stock and the other in August when he sold about $6.9 billion worth of stock. These sales are to fund the $44 billion purchase of Twitter. Reports also claim Elon Musk’s wealth has declined by $70 billion since his bid for Twitter back in April.

  • It is evident that the addition of Twitter to Musk’s list of self-owned companies could further stretch the billionaire thin and ultimately lead to a drop in potential and value. 
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