Tesla CEO Elon Musk has sold 19.5 million of his shares in the electric car company, according to documents released by the U.S. Securities and Exchange Commission on Tuesday, in a one-year deal. worth $3.95 billion.
The move follows its purchase of Twitter for $44 billion.
Musk has sold nearly $20 billion of his shares in Tesla since he first invested in the social media company in April. In August, before Twitter’s lawsuit finally sealed the buyout deal, Musk claimed he was done selling shares.
“In the (hopefully unlikely) event that Twitter forces this deal *and* certain financial partners don’t materialize, it’s important to avoid a fire sale of Tesla stock,” he said. he tweeted.
Musk, who is the richest man in the world, now owns about 135 million Tesla shares.
The sale came just weeks after Tesla reported third-quarter profit of $3.3 billion and revenue of $21.45 billion – below Wall Street expectations – which has caused a drop of 4% on the day. Tesla’s value has fallen about 46% this year, but Musk’s net worth remains just under $200 billion.
Musk admitted at the time of the results that he was “clearly paying too much for Twitter right now.”
Musk had pledged to fund the takeover himself, but later received backing in the form of $7 billion from investors including Oracle software group founder Larry Ellison and cryptocurrency platform Binance. . A consortium of banks also borrowed $13 billion to finance the operation.
After completing the takeover, Musk fired the CEO and several senior executives, before laying off up to half of the company’s workforce.
In the chaotic days that followed, it was reported that the company was looking to rehire some employees after realizing their roles were needed to keep the site running or to implement some of Musk’s proposed changes to the platform. form.
Musk originally planned to charge $20 a month to apply a blue checkmark to user accounts, in a revamp of the verification system. Now the fee has been reduced to $8 per month, with some verified accounts set to have “official” rated on their profiles.
The company delayed rolling out the verification change until after the US midterm elections.