CEO Elon Musk says he won’t sell any more shares of Tesla for 18 months or more, likely in an attempt to comfort the electric vehicle company’s shareholders, who have watched the stock lose nearly half its value since Musk completed his purchase of Twitter became October.
“I’m not selling any stock for 18 to 24 months,” Musk said Thursday during an audio-only group conversation on Twitter Spaces. Musk then said he wouldn’t sell Tesla stock for two years, but backtracked and said he would pause sales for at least a year.
Musk dumped another $2.58 billion in Tesla stock last week and has sold nearly $23 billion in shares in his automaker since April, when he began taking a position on Twitter. A significant portion of that revenue has been used to fund its $44 billion acquisition of the social media company, which has been mired in chaos since Musk acquired it.
In less than two months, Musk has spearheaded a dizzying array of changes that have unsettled advertisers and turned users off. He has laid off half the workforce, removed moderators from contract content and dissolved a council of trust and safety advisers. He has stopped enforcing the COVID-19 misinformation rules and has filed criminal charges against Dr. Anthony Fauci, the leading US expert on infectious diseases.
Tesla investors are fed up with the 24/7 Twitter mayhem they say has distracted the eccentric CEO from the electric-car company, his main source of wealth.
Tesla’s market value was over $1.1 trillion as of April 1, the last day of trading before Musk announced he was buying Twitter stock. The company has since lost nearly two-thirds of its value, at a time when rival automakers are stifling Tesla’s dominant share of electric vehicle sales.
Tesla shares fell more than 1% on Friday to $123.74. They each topped $360 on April 1st and hit an all-time high of over $414 in November 2021.
This week, Tesla increased the rebates it is offering on its two best-selling models through the end of the year, an indication that demand for its electric vehicles is flagging.
The Austin, Texas-based company began offering a $3,750 incentive on its website for its Model 3 sedan and Model Y SUV earlier this month, but on Wednesday doubled the discount to $7,500 for those who be delivered by December 31st.
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https://abc7.com/elon-musk-twitter-purchase-tesla-stock-2022-shareholders/12615908/ Elon Musk says he won’t sell Tesla shares for 18 months or more