We knew that Elon Musk was going to have to sell shares of Tesla to finance his takeover of Twitter, but we did not know until now the quantity of the titles that the richest man on the planet was going to put on the table. This Friday, April 29, we learn that it is a little over 4.4 million Tesla shares, of which he is the managing director and co-founder, that Elon Musk sold on Tuesday 26 and on Wednesday April 27, a few hours after an agreement on its takeover of Twitter.
This sale brought him about 4 billion dollars, according to documents filed with the American market regulator, the SEC. According to these same documents, he kept, at the end of the operation, a little more than 168 million shares of the manufacturer of electric vehicles, via a trust. “No further TSLA (Tesla’s stock symbol) sales after today,” Elon Musk tweeted Thursday.
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To finance the takeover of Twitter, for a total value of 44 billion dollars, Elon Musk has pledged to contribute up to 21 billion dollars of personal contribution, the rest being financed by debt. Many investors and analysts wonder about the actual realization of this operation. The value of Twitter stock remains quite significantly lower than the price offered by Elon Musk, or $54.20. Thursday, it closed on Wall Street at $49.11. The market often interprets the difference between the price of an offer and the value of a security as the risk premium, the measure of the risk represented by the acquisition.