Filings: Elon Musk sold ~$8.4B worth of Tesla stock in the days after his bid to take Twitter private; on Thursday, Musk tweeted “No further TSLA sales planned”
it's going to be hilarious watching Elon ruin Twitter and lose billions in the process https://twitter.com/... Johan Moreno / @dudejohan : I never believed Elon when he said “he doesn't care about the economics of acquiring Twitter.” If he is willing to gamble his fortune on Twitter, there has to be a pathway to profitability/sustainability to make it worth his time. https://twitter.com/...
CNBC
Context & Ripple Effects
The filings followed an earlier disclosure that Musk had sold roughly $4B of Tesla shares over two days after agreeing to buy Twitter, making the larger total a clear sign that his Tesla holding was being used to finance the transaction. The stated plan to stop selling also became consequential because related coverage later records further Tesla disposals tied to the acquisition.
Musk converts part of his Tesla stake into liquidity for the Twitter deal, while Tesla investors absorb a large insider sale during the acquisition process.
His statement that no further Tesla sales were planned sets an expectation for Tesla shareholders about the remaining financing burden.
Second-order effects
Later sales documented in the coverage weaken that expectation and keep Tesla’s share base tied to the funding demands of Twitter’s purchase and ownership.
Tesla investors must evaluate Musk’s stake not only as founder ownership but also as a source of capital for his separate Twitter transaction.
Third-order effects
The sequence illustrates how a controlling founder’s public-company equity can become the financing reservoir for a private acquisition, transmitting deal-specific funding needs to another company’s investors.
If repeated founder share sales accompany outside acquisitions, disclosure of ownership changes becomes a more important signal of cross-company financing pressure than a one-time pledge about future sales.
The trend: Founder-controlled public-company stakes are increasingly central to financing major private-company transactions, tying investors in one asset to the capital needs of another.
Musk is betting the farm on Twitter-clearly he is having trouble finding co-investors for the $21B equity portion of his bid. He is also pledging stock to lenders on the rest of the purchase price. He could lose a sh*t-ton of money on this vanity project! https://www.cnbc.com/...
🧵 Suppose you're @elonmusk, the wealthiest person in the world, but you are super illiquid because your net worth is mostly the stock of a single company, @Tesla, and if you sell your shares they become less valuable. How do you extract your $ without tanking the stock? (1/)
Honestly, Elon Musk has been a great cure for any imposter syndrome I might have had. Every time I even doubt myself in the future, I'll remind myself that this moron got banks to lend him billions https://twitter.com/...
Part of me feels like Elon is just executing an elaborate Kabuki play to sell tesla stock at a huge valuation. first the ‘poll’ for 10%, now 8b to buy twitter - I don't blame him at all - but clear special challenge of cult leadership is managing selling.
Yesterday it was reported Elon Musk sold $4 billion in Tesla shares on Tuesday to fund his Twitter deal, but today he disclosed more sales on Thursday, bringing the total to $8.4 billion. https://www.cnbc.com/...
Elon Musk's pockets are deep, but because his wealth is tied up in Tesla stock, along with equity in SpaceX and The Boring Co., he will have to sell millions of his shares and pledge millions more to raise the necessary cash. @robtfrank https://www.cnbc.com/...
The fact that banks listened to this tosh and thought “hmm, yes, this guy sounds like he's got a great business idea” tells you everything about how smart banks are. They do more due diligence loaning a pizza shop £5k for a new oven than lending a rich man billions for a new toy.…
I never believed Elon when he said “he doesn't care about the economics of acquiring Twitter.” If he is willing to gamble his fortune on Twitter, there has to be a pathway to profitability/sustainability to make it worth his time. https://twitter.com/...