Tesla Stock Rises Slightly Despite Elon Musk's $3.58 Billion Sale

Strategic Insights -

Shares of Tesla rose slightly Thursday despite news that CEO Elon Musk sold another $3.58 billion worth of the electric vehicle maker's stock this week. The stock closed at $157.67, up less than 1% but still close to its two-year lows. Musk, the new owner of Twitter, sold the Tesla shares from Monday through Wednesday, according to a filing posted Wednesday night with the U.S. Securities and Exchange Commission. The sale comes as shares of the electric vehicle and solar panel maker have collapsed, losing over half their value since Musk first disclosed in April that he was buying up Twitter stock.

Key Takeaways:

  • Tesla's stock closed at $157.67, up less than 1% despite Musk's $3.58 billion sale.
  • Musk has sold nearly $23 billion worth of Tesla stock since April, with much of the money likely going to help fund his $44 billion acquisition of Twitter.
  • The sale of Tesla shares has led to Musk being bumped from his status as the world's wealthiest person, with his net worth falling to $174 billion according to Forbes.
  • The takeover of San Francisco-based Twitter has not been smooth, with some big companies halting advertising on the social media platform due to controversy driven by Musk.
  • Investors have been punishing Tesla stock of late while Musk has spent much of his time running Twitter, raising concerns that he's distracted from the car company.
  • Twitter dissolved its Trust and Safety Council, an advisory group of around 100 independent civil, human rights and other organizations formed in 2016 to address hate speech, child exploitation, and other problems on the platform.

Statistics:

  • $3.58 billion: The amount of Tesla stock sold by Elon Musk this week.
  • $23 billion: The total amount of Tesla stock sold by Musk since April.
  • -$44 billion: The acquisition price of Twitter by Musk.
  • $157.67: The closing price of Tesla stock on Thursday.
  • 1%: The percentage increase in Tesla stock price on Thursday.
  • 2.5%: The drop in the S&P 500 index due to concerns about rising interest rates.
  • 50%: The loss in value of Tesla stock since Musk first disclosed in April that he was buying up Twitter stock.

Sources:

  • Global Data Point, "Tesla Stocks Gains Slightly Despite $3.58 Billion Sale by Elon Musk" (December 2022)
  • Forbes, "Elon Musk's Net Worth Falls To $174 Billion After Tesla Stock Sells" (2022)
  • Wedbush analyst Dan Ives, "Twitter Nightmare Continues As Musk Uses Tesla As ATM" (2022)
  • U.S. Securities and Exchange Commission, "Tesla Stock Sale Filing" (December 2022)