Science

Elon Musk sold $8 billion worth of Tesla shares in a few days | Kompaniya.ru

Over $40 billion operation

To finance the takeover of Twitter, Elon Musk needs money, a lot of money. If Tesla’s CEO and founder receives a $25.5 billion loan from Morgan Stanley and other banking institutions, he has also pledged to provide capital. According to documents filed with the SEC, the US regulator of the market, since last week the billionaire has thus split from 9.6 million Tesla shares worth $8.4 billion. However, Elon Musk told the crowd on Twitter that there would be no further share sales. Even if he also receives $12.5 billion in margin loans, that is, a loan provided against guarantees formed by Tesla shares. Operations that have not been without consequences for the automaker’s share price, which has not ceased to fluctuate since the beginning of April, and the announcement of Elon Musk’s first stake on Twitter.

Elon Musk will soon become the most indebted in the US?

If this operation goes through, as Elon Musk hopes, he will become the most indebted person in the United States. His huge fortune is mainly made up of Tesla shares, 60% of which will thus be pledged in the amount of $140 billion. Not enough to scare the billionaire, even if investors begin to doubt that the implementation of the operation poses a risk to the markets. “When you have several companies behind you that you oversee and manage, it can become difficult. (…) I won’t say if Elon Musk is capable of this because he could be superhuman, but overall, “This over-commitment could create problems for shareholders,” said June Frank of ISS Corporate Solutions at Forbes.

Back to top button