Elon Musk sells $4 billion in Tesla stock and declares that he is done selling

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Tesla CEO Elon Musk has lately sold Tesla stock.


According to four recent SEC filings also, Musk sold around 4.4 million TSLA shares for approximately $4 billion on Tuesday and Wednesday, according to CNBC.


Some Tesla supporters hoped Musk would find other ways to fund the transaction, which they saw as a pricey and distracting vanity project that only the world's richest person could afford.


Others were less startled, citing the odd increase in daily trading volumes and the stock's 12.7 percent drop this week. On Tuesday, 45.4 million shares were traded, followed by 41.2 million on Thursday, the sixth and seventh times this year that the 40 million milestone was broken. Volumes are typically half that amount. Tesla's CEO still controls 168.2 million shares in his firm, but a considerable portion of that has already been pledged as collateral for loans and cannot be readily sold.


Musk's Twitter purchase is still subject to approval


The acquisition of Twitter at a price of $54.20 (€51.27) per share was announced earlier this week and is scheduled to finalize later this year. However, before the transaction can be completed, shareholders and authorities must approve it. Few roadblocks are expected thus far, despite complaints from some Twitter staff and users concerned about Musk's stance on free speech and what it would imply for harassment and hate speech on the network.


According to a regulatory document released Tuesday, if Musk fails to acquire sufficient funds to complete his bid to buy Twitter, he would be required to pay the social media network a termination fee of $1 billion (€945 million).


The decision comes as Musk prepares to take over Twitter, which agreed to Musk's $44 billion acquisition proposal at $54.20 per share.

Musk stated in a tweet on Friday that he had no plans to sell any additional Tesla stock.


While Musk's announcement should assuage investor concerns about a potential stock overhang, it also signals that additional Form 4s may be on the way. They must be filed within two business days after the transaction date, according to legislation.


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Musk, who has been described as "cash poor" due to the fact that the majority of his wealth is tied in Tesla shares, as well as shares of other companies he runs, such as SpaceX and The Boring Company, likely needed the cash to help finance the Twitter deal, though he did not provide an explanation for the move.


Musk has been increasingly scathing of the "woke mind virus," claiming on Thursday that the Democrats had been "hijacked by fanatics." His growing political alienation from Democrats stems from repeated assaults on the billionaire by senior Democrats, who have attempted to portray Musk as a freeloader who avoids paying income taxes.


The serial entrepreneur, on the other hand, does not have to pay income tax since he has requested that Tesla's board not pay him a salary. Instead, Musk receives stock-based remuneration contingent on completing milestone goals, with the majority of his wealth invested in high-risk assets such as Tesla.


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If you're worried about the Coca-Cola Company – Musk previously joked that he was purchasing Coca-Cola to "put the cocaine back in" – don't worry; with a market valuation of over $287 billion, Musk's newly acquired cash wouldn't be enough to force a takeover.


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