Elon Musk dumps $8.5 Billion shares of Tesla for Twitter

Elon Musk sells stocks of Tesla worth $8.5 billion ahead of the takeover of Twitter. Elon Musk is a co-founder and leads Tesla, SpaceX, Neuralink, and The Boring Company. He has no further plans to sell TSLA shares in the future.

Chief Executive officer of Tesla Elon Musk has sold the stock of Tesla worth $8.5 Billion after overtaking Twitter. It is projected that he seeks help from the shares of TSLA for occupying Twitter as an owner. He likely aimed at helping finance his planned purchase of Twitter. Although, he sold $9.6 Billion shares in TSLA this week.

This much bigger slump attracts netizens as well as the shareholders in Tesla. Even they have asked the question about this from Musk. Musk has tweeted that “no further TSLA sales planned after today”. This selling of $9.6 billion worth equates to 5.6% of his stake in the company.

However, Tesla did not immediately respond to a Reuters request for comment. The sale came after Musk Monday clinched a deal to buy Twitter for $44 billion in cash in a transaction. It has shifted the control of social media platforms populated by Millions of users to the world’s richest person. The net worth of Elon Musk is around $268 Billion.

Deal of acquisition of Twitter

Musk secured $46.5 billion in financing in his buyout offer for Twitter. The financing plan included a $21 billion equity commitment from Musk and $12.5 billion in margin loans against as a portion of his Tesla shares, filings showed. Some traders have fretted this week that Musk may not have enough money sitting around to fund his $21 billion cash contribution

Also See: Elon Musk strikes deal to buy Twitter for $44bn

It was not immediately clear how the billionaire would raise the remaining $12.5 billion of equity financing. Musk holds a 43.61% stake in unlisted rocket company SpaceX, which is reportedly valued at $100 billion.

Tesla shares rose about 5% in morning trading on Friday. They have tumbled about 20% since Musk disclosed a more than 9% stake in Twitter on April 4. Musk has been looking for partners to reduce his equity contribution to the deal, adding that it is far from certain such a partner will emerge.

As a feature of the Twitter funding bargain, Musk got responsibilities for $13 billion in credits got against Twitter and a $12.5 billion edge advance attached to his Tesla stock.