Musk sells $3.5B worth of Tesla stock as investors voice concern over Twitter involvement
Tesla CEO Elon Musk sold over 20 million shares of the company stock between Monday and Wednesday. The sale is worth about $3.5 billion, according to a regulatory filing. Musk’s latest stock dump follows the nearly $4 billion worth of shares he sold last month.
Musk hasn’t provided a reason publicly for the share sell this time around, nor if he is done for the day. In April, he sold off $8.5 billion worth of Tesla stock, and in August Musk offloaded another $7 billion’s worth.
After Wednesday’s share sell, Musk owns roughly $66 billion worth of Tesla stock.
The sell comes as Tesla investors raise concerns over Musk’s involvement with Twitter, which the executive recently took over after a controversial, and expensive, purchase. Investors say Musk’s involvement with the social media platform is detrimental to Tesla, arguments they back by pointing to the company’s stock price. Trading at $156.80 after hours on Wednesday, Tesla stock is down 60.8% from January, and is on track for their worst full-year performance.
Some analysts speculate that today’s stock sell is Musk’s answer to some of the high interest debt he’s paying on his $44 billion Twitter deal. Twitter took on $13 billion in debt as part of that deal, including about $3 billion of unsecured debt on which Twitter pays an interest rate of 11.75%.
The stock sell also comes as some of Tesla’s most hardcore investors beg Musk and the board to consider buying back shares as the company’s stock price continues to slump. Musk said during Tesla’s Q3 earnings that the company is likely to do a buyback next year, possibly between $5 billion and $10 billion.
TESLA TECHNICAL ANALYSIS DAILY CHART:
In daily chart Tesla is currently is trading in down channel. Tesla is currently trading below all SMA.
RSI is in selling zone which shows bearishness. And stochastic is suggesting down trend.
Tesla immediate support level is at 155.2 & resistance level is at 161.37
HOW TO TRADE IN THIS WEEK
Tesla is trading in down channel; it will continue to trade downside until any reversal. So, remain bearish on it.