Elon Musk offloads $4 billion worth of Tesla stock, shares tumble in response

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According to a recent Bloomberg report, SEC Filings revealed on Thursday that Elon Musk sold $4 billion worth of Tesla Motors stock, totaling approximately 4.4 million shares. The sale was completed in the form of 138 individual transactions filed under five Form 4 SEC filings.

The move comes after the world’s richest man managed to land a successful deal with Twitter to gain ownership.

Since the SEC filings are backdated, that would mean these trades were made on April 26 and 27. That would represent 2.6% of Musk’s stake in the company. Taking to Twitter, Musk further announced “No further TSLA sales are anticipated after today.” That doesn’t necessarily mean there won’t be any more stock sale reports, since sales made on April 28, if any, would be revealed in Friday’s SEC filings. Tesla stock fell 12% on April 26, the steepest drop the company has seen since September 2020, closing at $877.51.

The exact reason for the move has yet to be revealed, but it wouldn’t be a stretch to assume that Musk may be liquidating assets to fund the $44 billion deal with Twitter.

While Twitter seems to be shining on Wall Street after Musk’s takeover, Tesla has largely been on the receiving end. Tesla holders apparently didn’t take the news well, as the company lost more than $125 billion in market value on Tuesday. Wall Street analyst Dan Ives said: “It’s a brutal cycle for Tesla investors navigating and casting a shadow over the name, with Musk selling more shares. The Twitter deal becomes an albatross for Tesla shares and it pours gasoline on the raging fire.

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