The richest man in the world, Elon Musk, always remains in the news. His controversial tweets and statements always land him in trouble. Currently, he has a legal dispute going on with the popular microblogging site Twitter. However, the recent development suggests that things are getting out of his control. Nothing is going in his favour. He is taking frantic measures which demonstrate his anxiety about his decisions. The way things are shaping up, he may be looking at bleak times ahead.
Musk dumping Tesla shares
Elon Musk is back in the news. Reportedly he is fast pulling out from his holdings in the electric car giant Tesla Inc. He is incessantly selling off millions of Tesla shares in a hasty manner. According to a CNBC report, Musk has sold 7.92 million (79 lakh) shares worth $ 6.88 billion. A financial filing report revealed this fact. He had sold these shares in a mere time span of 4 days between the 5th of August to the 9th of August.
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He has been constantly diluting his shareholdings in the company. Apparently, in the past 10 months, he has sold around $32 billion worth of Tesla shares.
Earlier, in April 2022, when Musk was working on a plan to buy Twitter, he sold shares worth $ 8.5 billion in the company.
After which he committed that he won’t be selling any more Tesla shares. He made this bold promise through a tweet.
29th of April he made a tweet promising that he will not sell any more Tesla shares. He said, “No further TSLA sales planned after today.”
No further TSLA sales planned after today
— Elon Musk (@elonmusk) April 29, 2022
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However, Elon Musk backtracked from his words. He has once again sold millions of company shares. Apparently, it is reported that he is taking these rash decisions to prepare for any eventuality that may arise from his legal dispute with Twitter.
Earlier, in April 2022, Elon Musk had made a bold announcement that he will be buying out twitter. After long negotiations, the deal was done for a humongous price tag of $ 44 billion. He was looking exuberant over this deal and was deciding on things he would change in the company. For more than two-and-a-half months negotiations continued between Musk and Twitter.
Also Read: Tesla is falling apart and Elon Musk’s failing genius streak is the reason
Since the twitter deal, there has been a constant drop in Elon Musk’s wealth. As per Bloomberg’s report Musk has suffered a massive drop of $ 20 billion in this financial year. At the start of the year, Tesla shares were trading at $ 1200 per share which is tanking very rapidly.
Many experts immediately questioned his intentions and commitment to the deal as he didn’t have enough resources to buy Twitter.
Experts rightly predicted two possibilities: either he will start burning his Tesla shares or we would call off the Twitter deal on some false pretext. Evidently, the inevitable happened. He started burning his Tesla shares because of which Tesla shares started tanking further making him jittery. Then on the pretext of “spam accounts,” he unilaterally decided to call off the deal. Since then, he has been in a legal dispute with the twitter administration.
This frantic sell-off indicates that he is preparing for an event of a forced twitter deal in case of a loss in the courts. As of now, Elon Musk has a shareholding of less than 15% in Tesla Inc. If the same trend continues and he is forced to buy Twitter for $44 billion, he may even be inclined to sell off his entire shareholdings and connection with Tesla paving way for his further downfall. He is paying a heavy price for his boosting attitude and irrational decision of offering to buy Twitter.
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