Elon Musk is evidently in need of some liquidity. The Tesla (NASDAQ: TSLA) CEO this evening filed a total of five Form 4’s with the Securities and Exchange Commission, indicating he has been unloading his take in Tesla for the last two days via his personal trust, and is evidently the reason behind the equity cratering over that time period.
Collectively, Musk sold a total of 4,415,000 shares over the course of April 26 and April 27, bringing in gross proceeds of $3,989,321,999.60. Much of the selling was conducted on April 26, when he sold 3.7 million shares worth $3.3 billion, versus the following day where just 0.7 million shares were sold for gross proceeds of $653.6 million.
In total, the shares were sold off via 138 individual transactions over the two day period, resulting in five Form 4’s being filed by the CEO.
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Notably, the sell off follows the news that Musk has entered into a definitive agreement to acquire Twitter (NYSE: TWTR) in a bid to take the social media platform private. The go-private transaction is set to occur at a price of $54.20 per share, which is estimated to cost the billionaire roughly $44 billion in total. Last week, Musk obtained commitments of roughly $46.5 billion as part of his bid for the company, of which he is set to commit $21.0 billion of his personal funds for, while the remainder is to come from senior secured term loans, bridge loans, and a margin loan on his stake in Tesla.
As of the most recent Form 4, Musk still holds roughly 168.2 million shares of the automotive firm in trust. However, the CEO broadcasted this evening that “no further TSLA sales planned after today,” thereby indicating additional form 4’s are likely for todays session.
Tesla last traded at $877.51 on the Nasdaq.
Information for this briefing was found via Edgar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
