Between Monday and Wednesday, Elon Musk, the CEO of Tesla, sold approximately 20 million shares of the company's stock. According to the paperwork, the total value of the deal is around $3.5 billion. After selling over $4 billion in shares last month, Musk is now selling another $2 billion.
Musk has not publicly explained his decision to sell shares today or indicated whether or not he is finished for the day. Musk unloaded $8.5 billion worth of Tesla shares in April and another $7 billion in August.
Following the sale on Wednesday, Musk's holdings in Tesla are worth around $66 billion.
Concerns over Musk's connection with Twitter, which he just bought in a contentious and pricey transaction, led to the sale. The stock price of Tesla has dropped as a result of investor concerns over Musk's use of Twitter, they claim. Stocks in the electric car maker were trading at $156.80 in the extended hours of Wednesday trading, down 60.8% from January and set for their worst year ever.
It has been theorized that Musk's stock sale today is a response to the exorbitant interest he is paying on the $44 billion he borrowed to purchase Twitter. As a result of the transaction, Twitter incurred $13 billion in debt, $3 billion of which is unsecured debt at an interest rate of 11.75 percent.
Investors said the sale didn't seem to be deliberate, and it's not apparent whether Musk is finished liquidating. However, Musk only has until this coming Friday to make any additional stock sales before Tesla remains silent until the end of the quarter. Some shareholders have complained that Musk's stock sales have been erratic, much to their dissatisfaction. He made a promise years ago that he wouldn't sell any of his shares. Earlier this year, Musk reversed course and said he was through with the sales process. But then, surprise, he dumps stock again—three distinct times.
As the stock price of Tesla continues to fall, some of the company's most dedicated investors have been pleading with Musk and the board to consider buying back shares. During the third quarter results call, Musk said that Tesla may repurchase as much as $10 billion in shares in the next year.
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