Musk Offloads $3.5 Billion in Tesla Shares Amid Growing Investor Frustration
Tesla CEO Elon Musk sells another $3.5 billion in company stock, bringing his total sales for the year to nearly $23 billion. The sudden sale sparks frustration among investors who worry that his divided attention is severely damaging Tesla's stock price.
Tesla CEO Elon Musk sells more than 20 million shares of his company stock between Monday and Wednesday, a move worth roughly $3.5 billion. This recent sale adds to the nearly $4 billion worth of shares he offloads just last month, leaving him with about $66 billion in remaining Tesla holdings. Musk provides no public explanation for this latest transaction, leaving observers to guess his exact motivations.
This massive stock dump occurs as Tesla investors increasingly voice concern over Musk’s deep involvement with Twitter. With Tesla stock down nearly 61% since January and on track for its worst yearly performance, shareholders argue that Musk's focus on the social media platform is actively hurting the electric vehicle maker. Analysts speculate that the sale helps Musk cover the high interest payments on the $13 billion in debt tied to his $44 billion Twitter acquisition.
The unexpected sell-off frustrates investors who note Musk's repeated broken promises to stop selling his shares. Adding to the tension, hardcore Tesla supporters actively beg the executive and the board to authorize a share buyback to help the slumping stock, a move Musk previously hints could happen next year. Furthermore, the sale takes place on the exact same day the Federal Reserve raises interest rates, suggesting Musk might be selling in anticipation of further stock declines.