On Thursday, filings with the SEC revealed that Tesla CEO Elon Musk sold $4.8 billion worth of the electric automaker’s stock on Tuesday.
The sale came just one day after the Twitter board agreed to sell the company to him for $54.20 per share, valuing the company at about $44 billion.
On Tuesday, Musk sold 5.3 million shares of Tesla stock for an average price of $905.30, according to the SEC filings. Musk’s sale accounted for 3.1% of the Tesla shares he owned at the beginning of Tuesday. The stock sold is less than 2% of his total holdings of Tesla when his stock options as CEO are included.
The filings do not reveal the reason for the sale, but it could be part of his actions focused on raising funds to purchase Twitter and take the company private.
In a tweet late Thursday evening, Musk answered a question about the stock sale with the remark, “No further TSLA sales planned after today.”
No further TSLA sales planned after today
— Elon Musk (@elonmusk) April 29, 2022
It is unclear whether or not the comment indicated there would be no further sales after those reported on Tuesday. Many have wondered if there were additional sales that took place Wednesday and Thursday which have not been reported in similar filings.
The SEC requires insiders at a company, such as Musk, to report purchases or sales of that company’s stock to the SEC to inform the broader investment community of their activity. The rules allow the seller a couple of days to make the filings and still comply with the regulations.
The sale of Tesla shares this week was significant enough to put downward pressure on the electric vehicle manufacturer’s stock price. The volume of shares sold represents 20% of the average trading value in Tesla shares since the beginning of 2022. Tesla shares lost 12.2% of their value during the course of trading Tuesday — the most significant one-day drop since September of 2020. The decline spurred a selling spree by other investors as 45 million shares traded hands, about twice the volume of trades the day before.
Musk’s Tesla holdings — which he could use as collateral for loans to raise the cash for the purchase of Twitter — have reportedly made him the wealthiest man in the world.