The drama surrounding and following Elon Musk just doesn't seem to dissipate. Musk is, of course, the head of several companies. There's the publically listed Tesla. But there are also his private companies like SpaceX, Neuralink and The Boring Company.
And Twitter.
Twitter was dramatically bought out by Musk, with the final deal going through last month. The company will now be taken private at US$54.20 a share. We've seen the news of massive staff layoffs and the departure of Twitter's old CEO and chief financial officer since.
But we have also just seen some fresh news regarding Musk.
According to a Securities and Exchange Commission (SEC) filing, Musk has just offloaded 19.5 million shares of Tesla, worth close to US$4 billion.
Musk has been selling down his Tesla stake for a couple of years now. But 2022 has seen the selling accelerate, with this latest tranche taking total sales this year to almost US$20 billion.
Why is Elon Musk selling his Tesla shares?
So it's unclear why Musk has stepped on the gas when it comes to selling his Tesla shares. Uncharacteristically, he hasn't taken to Twitter to explain his motives. But we can probably conclude that the sales have at least something to do with his Twitter deal.
It cost Musk around US$44 billion to buy out Twitter. As we covered at the time, much of this funding came from loans and significant private investors like Twitter founder Jack Dorsey.
But Musk is still on the hook for a big chunk of change for the US$44 billion deal. So it's very possible that Musk is battening down his own financial hatches and just making sure he has plenty of liquid capital on hand in case he needs it for his Twitter deal.
Or he could just be trying to diversify his wealth. Musk still has more than 445 million Tesla shares to his name, an amount worth approximately US$85.25 billion or around 14% of the company's total share count. Perhaps he is branching out. It can be risky to have so many eggs in one basket.
But seeing as Musk is offloading so many Tesla shares at 2022 prices (which are a lot lower than those we saw in 2021), we'd have to conclude it's probably the former.
