Elon Musk sold another $3.58 billion worth of Tesla shares, which are trading ever lower

Elon Musk, target of investor criticism (AP) (Matt Rourke /)

Elon Musk sold this week another consignment of Tesla stock worth about $3.58 billion, though it was not clear what the profits would be used for.

The Tesla CEO and new owner of Twitter sold the shares between Monday and Wednesday, according to a report filed Wednesday night with the US Securities and Exchange Commission (SEC).

Musk has sold nearly $23 billion worth of Tesla shares since Apriland it is likely that much of it will go to finance its acquisition of Twitter for 44,000 million dollars.

Shares of the maker of electric vehicles and solar panels have tumbled, losing nearly half their value since Musk announced in April that he would buy Twitter shares.

The stock market crash has made Musk lose your status as the richest person in the worldand its assets have fallen to $174 billion, according to Forbes. Last week he was outbid by French fashion and cosmetics magnate Bernard Arnault.

Elon Musk speaks at a Tesla event (Reuters)
Elon Musk speaks at a Tesla event (Reuters) (Beck Diefenbach /)

The acquisition of Twitter has been bumpy, and some big companies have stopped advertising on the social media platform. Musk has said that Twitter suffered a “huge drop in revenue” from the loss of advertisers.

Criticism and falling shares

Tesla’s shares extended their slides to hit lows in more than two years on Wednesday as investors, including an “enthusiast” of its chief executive, lashed out at Elon Musk’s distraction of the electric car company after the purchase of Twitter.

Tesla, the world’s most valuable automaker, is one of the worst performing stocks of the year among auto majors and among technology companies as investors fear the purchase of Twitter will take Musk’s time away from Tesla and he may sell more titles to prop up the social media company.

Wedbush analyst Dan Ives noted that for many Tesla investors, Musk has become a villain. Although Tesla’s base remains healthy, the executive’s behavior with Twitter has hurt the company’s brand image. “Twitter’s shadow is a nightmare on the rise and there’s no one to blame but Musk”, Ives said in an email.

Investors are also increasingly concerned that their antics could damage the brand and sales from Tesla, the world’s first electric car maker facing increasing competition.

Elon left Tesla and Tesla doesn’t have a functioning CEOKoGuan Leo, Tesla’s third-largest individual shareholder, who describes himself as a Musk “fanboy,” tweeted on Wednesday.

“Are we just carriers of Elon?” he said. “It takes a hangman, type Tim Cook, not Elon”, he added in reference to the CEO of Apple.

Tesla shares were trading down 1.4%, after falling 3.2% to $155.88, a low since November 18, 2020. And they have plunged 55% so far this year. year, underperforming GM, Ford, Apple and Amazon.

Musk said Tuesday that he will “make sure that Tesla shareholders benefit from Twitter for the long term,” without elaborating.

Even Tesla fans and supporters expressed outrage over Musk’s controversial tweets.

“Elon is a brilliant business leader. He will realize soon (if he hasn’t already) that his polarizing political views are hurting customer perception of $TSLA (Tesla) EVs,” Gary Black, an investor, tweeted Wednesday. of Tesla

“Customers don’t want their cars to be controversial. They want to be proud to drive them, not ashamed,” she added.

Goldman Sachs on Tuesday cut its price target for Tesla shares and estimates for deliveries and gross margins for the fourth quarter, reflecting more subdued supply and demand.

(With information from AP and Reuters)

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