Tesla Stock Gains as Elon Musk Says No More Sales Planned After Selling $4 Billion Worth of Stock -Breaking
According to reports filed with the Securities and Exchange Commission, Elon Musk sold off around $4 billion worth of Tesla shares (NASDAQ:), after agreeing to a $44 million deal to make Twitter (NYSE::) private.
According to the filings, the billionaire had sold around 4.4 Million Tesla shares. Most of the sales occurred on Tuesday.
“No further TSLA sales planned after today,” Musk tweeted minutes after the filings became public.
Twitter accepted Musk’s bid on Monday, in a deal that will value the social media giant at $44 billion at $54.20 per share. To fund the deal, the Tesla CEO secured a fully committed debt of $25.5 billion, including $12.5 billion in loans against Tesla’s stock.
The shareholder and regulatory approvals are still required for the deal.
Musk must pay Twitter $1 billion termination fees if he fails to secure sufficient capital for the transaction. Twitter will similarly pay Musk a $1B breakup fee, if it receives an offer of another bidder or if shareholders don’t approve the transaction.
Tesla stock prices are up by 3% following yesterday’s close at $877.51, a six-week low.
By Senad Karaahmetovic