8/19/2023 0 Comments Tesla stock elon musk![]() ![]() Gerber says that the market can’t absorb $40 billion in open market sales and that the amount sold was bigger than most IPOs – hence why he argues those sales should have gone through an offering. A lot of those sales happened around $200 a share and he broke the stock. Instead, they were open market sales that were front-run by short sellers and some of those happened in desperation in October and November when he needed money for Twitter when Twitter revenue went to zero. He argues that Musk should have done a stock offering: Now Gerber more specifically accused Musk of destroying Tesla’s stock in the way he sold the stock. However, he said that before and didn’t follow through. The CEO eventually did promise not to sell more Tesla stocks for the next few years. He told Gerber to go back to and read textbooks from Finance 101 because he believed the decline in Tesla’s stock was simply due to the broader stock market and FED initiatives. Musk has never directly acknowledged the impact of his selling and actually denied it being a significant factor. The investor had to explain why the fund was down 32% over the last year, and, unsurprisingly, he blamed it on the performance of Tesla’s stock, which the fund is heavily investing in.īut more specifically, Gerber blamed it on Elon Musk and the way he sold Tesla stocks to finance his acquisition of Twitter:Įlon dumped $40 billion of Tesla stocks last year – causing a massive decline in Tesla stock price. Gerber runs the Gerber Kawasaki ETF, and it had its January shareholder meeting yesterday. 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.Ross Gerber, a major and vocal Tesla investor, says Elon Musk broke the Tesla stock when he sold it to buy Twitter. 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. But then lo and behold, he goes ahead and dumps stock again on three separate occasions. When he went back on that earlier this year, Musk said he was done selling. Years ago he said he wouldn’t sell shares. Some investors expressed frustration that Musk has been unpredictable when it comes to selling stock. ![]() ![]() That said, Musk only has until Friday to sell more stock before Tesla goes into a quiet period for the end of the quarter. Investors say it doesn’t seem like the sell was planned, and it’s unclear if Musk is done selling. 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%. 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. 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. 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. 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. In April, he sold off $8.5 billion worth of Tesla stock, and in August Musk offloaded another $7 billion worth.Īfter Wednesday’s share sell, Musk owns roughly $66 billion worth of Tesla stock. Musk hasn’t provided a reason publicly for the share sell this time around, nor if he is done for the day. Musk’s latest stock dump follows the nearly $4 billion worth of shares he sold last month. The sale is worth about $3.5 billion, according to a regulatory filing. Tesla CEO Elon Musk sold more than 20 million shares of the company stock between Monday and Wednesday. ![]()
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