Elon Musk has sold $3.95 billion in Tesla stock since completing his acquisition of Twitter late last month.
Musk’s Tesla stock transactions, which equalled 19.5 million shares, have been widely anticipated since Musk agreed to buy Twitter for $44 billion. Since the announcement of his deal to buy Twitter earlier this year, Musk has sold blocks of Tesla stock valued at a total of $15.4 billion.
Twitter acknowledged Musk purchased the social media startup on October 27, but he did not begin selling additional Tesla shares until November 4. According to Securities and Exchange Commission filings late Tuesday night, he also sold blocks of Tesla stock on Monday and Tuesday this week.
It’s unclear whether the funds Musk raised were used to fund the Twitter acquisition or to cover losses at the company since he took charge.
Musk revealed last week that Twitter had experienced a “massive drop in revenue” as a rising number of advertisers delayed spending on the platform following his acquisition of the firm. He blamed the loss of ad dollars on “activist groups” lobbying advertisers.
He has announced plans to charge consumers $8 per month for verified accounts and significant staff.
Clearly, this is not the time to sell Tesla stock, which has lost 46 percent of its value this year due to dismal sales driven by supply chain issues. As a result, shares of Tesla fell 0.7% in after-hours trading Tuesday. Tesla shares dropped 0.7 percent in after-hours trade on Tuesday.
Moreover, established automakers such as Volkswagen, Ford, and General Motors are increasing their competitiveness in the electric vehicle industry.
Some investors are concerned that Musk will be too preoccupied with his purchase of Twitter to devote enough attention to addressing Tesla’s difficulties.