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Elon Musk Cashes In To Buy Twitter With Tesla Stock Flash Sale

2022-04-29T12:47:54.824Z


The billionaire comes off in two days of titles for almost 4,000 million dollars Elon Musk, in Cape Canaveral (Florida, USA), in January 2020. Joe Skipper (REUTERS) Elon Musk raises cash to finance the purchase of Twitter. The billionaire has revealed that in the two days after the agreement to buy the social network for about 44,000 million dollars (about 42,000 million euros at current exchange rates), he sold shares of the car manufacturer Tesla for an amount of about 4,00


Elon Musk, in Cape Canaveral (Florida, USA), in January 2020. Joe Skipper (REUTERS)

Elon Musk raises cash to finance the purchase of Twitter.

The billionaire has revealed that in the two days after the agreement to buy the social network for about 44,000 million dollars (about 42,000 million euros at current exchange rates), he sold shares of the car manufacturer Tesla for an amount of about 4,000 million. dollars (3,790 million euros).

The richest man in the world has officially communicated the operations to the Securities and Exchange Commission of the United States (the SEC, for its acronym in English).

Investors feared just that: that Musk would sell shares of Tesla.

What they didn't know is that he was already doing it at full throttle, while the price was plummeting.

In fact, his own sales may have directly contributed to the stock's decline.

On Tuesday, April 26, in the midst of Musk's selling frenzy, the price sank 12%, with which the company lost 126,000 million in value on the Stock Market.

On Wednesday and Thursday the action has moved little.

After communicating those operations, which total 4.4 million shares, Musk has tweeted: "No more sales of Tesla shares planned after today."

Assuming there are no more executed trades pending notification, Musk still has 168.2 million shares of Tesla, valued at about $150 billion.

In any case, the objective of that message is to reassure the market, but it is not clear if that tweet is enough as a counterweight to the confirmation that the company's main shareholder has been selling shares at close range.

No further TSLA sales planned after today

— Elon Musk (@elonmusk) April 29, 2022

The information communicated to the SEC, the Washington-based market supervisory body, shows that Musk sold the shares at prices that ranged between 879 and 1,000 dollars per share, which gives an idea of ​​the strong oscillation that the stock has had. company on the stock market in recent days.

In principle, Musk has loans of 13,000 million dollars backed by Twitter's own assets, 12,500 million more guaranteed by part of his shares in Tesla and to that should be added around another 21,000 million contributed by the investor himself.

The origin of this last part is the one that was not at all clear and the direct sale of Tesla shares now reported brings about 4,000 million dollars.

The financing is led by Morgan Stanley, which provides 3,500 million of the loan associated with Twitter and 2,000 million of the guaranteed with Tesla shares.

The other banks with more weight are Bank of America, Barclays and MUFG, with 2,700 million each in the first loan and 1,500 million in the second.

bug with users

Twitter has recognized this Thursday an error by which from the first quarter of 2019 and until the fourth quarter of 2021 it had overestimated the calculation of its monetizable active daily users (mDAU, in the company's nomenclature) by almost two million accounts.

The company has explained that with the launch in March 2019 of a feature that allowed multiple separate accounts to be linked, "a mistake was made at the time", so that actions taken through the main account resulted in all accounts being linked. linked will be counted as active users.

“This resulted in an overestimation of mDAU from the first quarter of 2019 to the fourth quarter of 2021,” the company has reported, which has thus cut its number of monetizable active daily users at the end of 2021 to 214.7 million,

This is the second time that Twitter has admitted a similar miscalculation in one of the variables the market most closely tracks, having discovered in 2017 that it had overestimated its active users for three years.

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Source: elparis

All business articles on 2022-04-29

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