The Wall Street Journal reported that American billionaire Elon Musk is likely to sell additional shares of his stake in the electric car company Tesla. The American newspaper noted that Musk has already sold 4.5 million shares, but he needs to sell 12.5 million additional shares from the 170 million shares he owns in Tesla to fulfill commitments he made through his Twitter account.
Musk had previously sold part of his stake in the American company for $5 billion, marking the first sale of part of his shares in the electric car giant since 2016. This move came just a few days after a poll he published on Twitter on November 6, asking his followers for their opinions on selling ten percent of his stake in Tesla.
The sold shares represent about three percent of his total holdings in the electric vehicle manufacturer, which constitute the largest portion of his wealth estimated at around $281.6 billion. The sale provided Musk with significant cash reserves, as his wealth is tied to his stakes in Tesla and SpaceX, and he does not receive a cash salary or compensation for his work in either.
The newspaper stated that the exact number of shares sold depends on how Musk determines his ownership stake in Tesla. The American billionaire did not respond to the newspaper’s request for comment.
Musk – still the largest investor in Tesla – remains at the top of the world's wealth rankings despite selling part of his stake in the electric car company, according to Bloomberg's Billionaires Index. Tesla's shares fell by 13 percent following Musk's poll, closing at $1063.51 on Thursday. Despite this decline, Tesla's stock is trading at record levels, with the company valued at over one trillion dollars.
Ben Silverman, director of research at InsiderScore, a leading trading firm, stated that Tesla investors may face additional volatility in the company's shares. He added, "I do not believe the volume of Musk's sales will create volatility. I think the volatility comes from interpreting his actions and words."
