tesla share price Friday closed lower, breaking an 11-week winning streak after filing that CEO Elon Musk sold another block of the company’s stock for nearly $700 million, taking advantage of a meteoric rally that saw electric-car Made the manufacturer’s value more than $1 trillion.
The second round of massive stock sales this week came just days after the world’s richest man and top Tesla shareholder tweeted that he would sell 10% of his shares if the social media platform’s users approved the move. .
Shares of the electric-car maker fell 2.8% on Friday to close at $1,033.42. Shares have risen more than 46% this year after a sharp rally in October.
Musk’s trust sold 587,638 and 52,099 shares on Thursday for $687 million in multiple transactions, according to two separate filings on Friday.
Earlier this week, Musk revealed that he had unloaded some $5.1 billion in Tesla stock. It has now sold about 3% of its shares, according to Reuters calculations.
The stock sales, which marked the first time that Musk redeemed a stake of that size since the company’s founding in 2003, were massive by capital market standards, eclipsing most companies’ initial public offerings.
By flagging the move to Twitter users, he has criticized the potential for cashing out at a time when Tesla’s valuation has blew up and shares are at record highs.
Still the most valuable US automaker
Tesla shares fell 15.4% this week and lost some $187 billion in market value, more than the combined market capitalization of Ford Motor Co. and General Motors Co.
Despite the week’s losses, Tesla is still the most valuable US automaker. The recent strong gains in the stock have underscored the demand for shares of electric vehicle (EV) makers.
Following Rivian Automotive Inc.’s blockbuster market debut on Wednesday, the two most valuable US automakers are EV companies.
Irvine, Calif.-based rival, Musk, tweeted Thursday: “There have been hundreds of automotive startups in both electric and combustion, but Tesla is the only US carmaker to reach high volume production and positive cash flow over the past 100 years. “
more sales?
Musk previously said he would have to exercise a large number of stock options over the next three months, which would create a huge tax bill. Selling some of your stock can free up money to pay taxes.
Prior to the sale, Musk owned a roughly 23% stake in Tesla, including stock options. He now needs to sell about 12 million more shares to meet his pledge to sell his 10% stake.
“We expect share sales to continue, as Musk has billions of dollars worth of options that would otherwise be worthless,” said Jason Benowitz, senior portfolio manager at Roosevelt Investments, and he also conducted share sales under 10b5-1 plans. planned.” Group LLC in New York.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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