Musk Sells Tesla Shares Worth 5 Trillion Won... "Won't Sell More"

Tesla Stock Plummets 12% on First Day of Sales to Raise Funds for Twitter Acquisition

[Image source=Yonhap News]

[Asia Economy Reporter Kang Hee-jong] Elon Musk, CEO of Tesla, has sold Tesla shares worth 5 trillion won to acquire the social networking service (SNS) Twitter. Musk stated that there will be no additional sales.

On the 28th (local time), Bloomberg cited documents submitted to the U.S. Securities and Exchange Commission (SEC), reporting that Musk sold Tesla shares worth 4 billion dollars (about 5 trillion won) over two days from the 26th to the 27th. After this fact was disclosed, Musk wrote on Twitter, "There will be no additional sales of Tesla shares after today."

Previously, Musk announced that out of the 44 billion dollars for acquiring Twitter, 21 billion dollars would be raised through his own capital. Until now, Musk had not specified how he would secure this money. This sale of Tesla shares is interpreted as covering that amount. The remaining 25.5 billion dollars will be raised from banks such as Morgan Stanley, Bank of America, and Barclays, including a Tesla stock-backed loan of 12.5 billion dollars.

So far, the market has speculated that Musk might sell Tesla shares to raise funds for acquiring Twitter. As a result, Tesla's stock price recently dropped by more than 20%.

In fact, on the 26th, when Musk sold Tesla shares, the company's stock price plummeted by 12%. This was the largest drop since September 2020. Musk must pay a penalty of 1 billion dollars if he fails to acquire Twitter.

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