Elon Musk Sells $5 Billion in Tesla Shares

Elon Musk Sells $5 Billion in Tesla Shares

December 7, 2021 0 By Stephen Callahan

Elon Musk just made a huge announcement. According to an article published on NYtimes, the billionaire CEO of Tesla has sold $5 billion in shares, partly to cover taxes on stock options. Elon Musk sold shares worth 4.5 million each day after the markets closed on Monday and Tuesday.

He still holds an estimated 17 per cent in Tesla stock, which has been a good bet for Musk. Its market capitalization is now at about $55 billion, making it worth more than Ford Motor Company and close to General Motors.

Engaging Followers on Social Media

Before making the bold move, Mr. Musk posted a poll on his Twitter account asking his followers if he should sell the shares. A total of 57,267 people responded to the survey, and 58 per cent voted yes. According to the article, Elon Musk would still sell the shares regardless of the poll’s outcome.

During the time of the polls, Tesla’s stock went down by 16 per cent. It then went back up and closed at $379.57 on Tuesday evening, which is still a significant drop from its peak of $389 in June 2017.

Only two weeks ago, Elon Musk announced that he wanted to retake Tesla private because its stock price has been too volatile for some investors who have substantial stakes in Tesla. He said this would bring more flexibility going forward as it will no longer be under intense scrutiny from Wall Street analysts and shareholders every time they post an earnings report or decide to invest heavily into new projects that could potentially hurt their bottom line down the road.

While the company has been struggling to ramp up production of their Model three cars, Musk is betting that his $24.17 billion purchase of SolarCity in 2016 will help Tesla get on track and become profitable very soon.

Musk’s Twitter account was not only used for this purpose. He also uses it as a platform to announce new projects or ideas he has for future growth, such as an electric semi-truck which they plan to unveil sometime next year. Elon Musk also revealed some insights into what we can expect from Tesla’s upcoming product line-up.