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Elon Musk dumps $8.5 billion in Tesla stock ahead of Twitter purchase

Elon Musk sold $8.5 billion worth of Tesla stock this week as he prepares to take over Twitter for $44 billion – but he insists the remainder of his stake in the electric carmaker is for now remains untouched.

Securities filings revealed on Friday that Musk sold 5.2 million Tesla shares through open market transactions that took place on Thursday. That brings the total to 9.6 million shares, after earlier disclosures detailed previous $4 billion in share sales on Tuesday and Wednesday.

The stock sales totaled 5% of its stake in Tesla, which is currently worth $8.5 billion.

“No further TSLA sales are planned after today,” Musk tweeted Thursday.

Tesla shares have been under pressure since Musk first announced earlier this month that he had acquired a roughly 9% stake in Twitter. The stock moved lower this week as investors braced themselves for the likelihood that Musk would sell some shares to scrape together the cash he needed to buy Twitter.

Tesla CEO Elon Musk
Musk’s plans to take over Twitter have had a negative impact on Tesla’s stock price.
AP

Tesla rebounded slightly on Friday after Musk announced he was done selling shares, up 3%.

Musk still owns nearly 16% of Tesla stock, according to FactSet data cited by the Wall Street Journal.

As The Post previously reported, Musk secured $46.5 billion in funding in his takeover bid for Twitter. The financing plan included a $21 billion equity commitment from Musk and $12.5 billion in margin loans as part of his Tesla shares, the filings show.

Elon Musk
Elon Musk’s $44 billion purchase of Twitter sets the stage for potential battles with regulators and activists.
Getty Images

In his pitch to the banks, Musk said he could take several cost-cutting measures if his Twitter acquisition is successful — including ordering layoffs at the social media company and cutting executive salaries.

Earlier this week, Twitter’s board of directors accepted Musk’s offer to buy the company for $44 billion, or $54.20 per share. Both sides agreed to pay a $1 billion exit fee if the deal falls through — whether it’s because Musk loses funding or Twitter accepts another unsolicited offer from a third-party.

Musk had already sold billions of dollars in Tesla stock late last year as he prepared to pay a record tax bill triggered by his move to exercise stock options.

He faced SEC scrutiny after tweeting a poll asking the public to vote on whether to sell 10% of his stake.

https://nypost.com/2022/04/29/elon-musk-dumps-8-5b-in-tesla-stock-ahead-of-twitter-buy/ Elon Musk dumps $8.5 billion in Tesla stock ahead of Twitter purchase

DUSTIN JONES

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