Tesla’s boss, Elon Musk has sold a majority of Tesla’s shares which is worth $3.6 billion according to regulatory filings. This automatically removes him as the world’s richest man in the world.
Reports have it that the above transactions took place between Monday and Wednesday (12th and 14th December 2022).
It also revealed that Musk had earlier sold $8.4 billion Tesla shares in April and an additional $6.9 billion shares in August.
The sales are coming after Musk told his Twitter followers he had no plans to sell any more shares till after the offload in April.
Reasons Behind Elon Musk’s Decision To Sell Tesla’s Shares
Musk started to sell off his Tesla shares after agreeing to Twitter in a deal worth $44 billion. The acquisition was finalized in late October and Musk immediately appointed himself as the CEO of Twitter.
Taking over Twitter, he told his employees that he sold Tesla shares to save their business. As part of the buyout, Twitter will have to pay about $1 billion a year in debt. Some of the banks that made the loans are preparing to book losses on that debt this quarter. To avoid unnecessary drama, Elon Musk will personally have to pay the debt.
Read Also: TotalEnergies To Generate N85 Billion In Q1 2023
Tesla Shares Continues To Decline
According to the Wall Street Journal, Tesla shares declined to about 2.6% on Wednesday at $156.80, dropping the company’s market capitalization to $495 billion.
Could this be one of the reasons Musk is venturing into smartphone production?
Recall that Elon Musk has indicated that he would reluctantly move into smartphone production. However, it was Apple and Google that prompted this. They said they are ditching Twitter due to potential violations of rules relating to the
distribution of content.
In the latest bombardment of provocative messages posted on Twitter since taking over the company
last month, the businessman said he would resort to manufacturing his mobile phone if his social
the media company is taken off Apple and Google’s respective app stores.
Conclusion
I still do believe that this is one of the many reasons Musk is venturing into smartphone production. Anyways, let’s wait and see.
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