US SEC filing shows Elon Musk has sold Tesla shares on three days. These sales had a negative impact on Tesla share prices. This is one reason not to trade options as these events are unpredictable.
He has sold 4.4 Million shares and received $843,163,160 on 11/08/2022. His average selling is $191.628. The price range of the transactions vary from $189.578 to $197.7. The Nasdaq was up +0.49% up 51.68 to finish at 10,616.2. Tesla finished $191.30, -$5.78 or -2.93% for the day.
Another filling showed he sold 5.45 million shares and received $1,093,165,508 for an average price of $200.581.
A third filing showed Elon Musk sold 9.65 million shares for $2,012,758,725 for an average price of $208.58.
These three days of selling provided Elon Musk with $3,949,087,395.
As of 11/08/2022, he still holds 445,617,432 shares.
These sales have negatively impacted Tesla share price in the near term. These new supply of sell orders for Telsa shares exceeded demand for buyers of the shares and the price dropped to attract new buyers. At some point in 11/04/2022, Elon Musk sold a batch of 244,456 shares at $219.909. The lowest price he sold happened on 11/08/2022 with a batch of 773,531 shares selling for $197.196 based on SEC filings. While Tesla shares could be falling for multiple reasons, Elon Musk selling shares contributed to the prices falling from $219.909 to $197.196 for drop of about -10.3%.
Why is Elon Musk selling?
It is important to understand the reason for him selling. The new Tesla shares sold are related to the Twitter purchase. Elon Musk tweeted that he sold shares to save Twitter. The sale does not appear related to the future prospect of Tesla. There had been no significant announcements from Tesla since the Q3 earnings conference. He completed the purchase of Twitter for $44 billion about a week ago. The most probably reason for the sale is related to the Twitter purchase. According to Reuters, bank debt financing contributed $13 Billion. Other investors contributed $7.1 billion. Elon Musk before making the offer to buy Twitter already has 9.6% ownership in Twitter worth about $4 billion. He had sold Tesla shares last November, December and this April and August that net him $20 billion.
While these transactions hurt Tesla share price in the near term, it does not affect Tesla’s financial performance, product competitiveness, deliveries or factory production. These shares were already given to Elon Musk and there is no new dilution.
| Date | Shares | Price | Proceeds |
|---|---|---|---|
| 11/04/2022 | 485578 | 203.673 | 98899127.994 |
| 11/04/2022 | 998114 | 204.6 | 204214124.4 |
| 11/04/2022 | 1091614 | 205.596 | 224431471.944 |
| 11/04/2022 | 2686528 | 206.673 | 555232801.344 |
| 11/04/2022 | 997104 | 207.361 | 206760482.544 |
| 11/04/2022 | 148678 | 208.426 | 30988360.828 |
| 11/04/2022 | 91943 | 209.882 | 19297180.726 |
| 11/04/2022 | 944828 | 210.757 | 199129114.796 |
| 11/04/2022 | 663677 | 211.41 | 140307954.57 |
| 11/04/2022 | 307416 | 212.491 | 65323133.256 |
| 11/04/2022 | 137877 | 213.528 | 29440600.056 |
| 11/04/2022 | 222303 | 214.856 | 47763133.368 |
| 11/04/2022 | 93045 | 215.611 | 20061525.495 |
| 11/04/2022 | 90493 | 216.633 | 19603770.069 |
| 11/04/2022 | 196661 | 217.7 | 42813099.7 |
| 11/04/2022 | 249580 | 219.215 | 54711679.7 |
| 11/04/2022 | 244561 | 219.909 | 53781164.949 |
| Total | 9650000 | 2012758725.739 | |
| Average | 208.576 |
| Date | Shares | Price | Proceeds | |||
|---|---|---|---|---|---|---|
| 11/07/2022 | 773531 | 197.196 | 152537219.076 | |||
| 11/07/2022 | 151958 | 197.983 | 30085100.714 | |||
| 11/07/2022 | 1747633 | 199.452 | 348568897.116 | |||
| 11/07/2022 | 1047768 | 200.305 | 209873169.24 | |||
| 11/07/2022 | 318902 | 201.542 | 64272146.884 | |||
| 11/07/2022 | 513373 | 202.431 | 103922609.763 | |||
| 11/07/2022 | 383525 | 203.475 | 78037749.375 | |||
| 11/07/2022 | 239491 | 204.629 | 49006803.839 | |||
| 11/07/2022 | 52445 | 205.333 | 10768689.185 | |||
| 11/07/2022 | 42932 | 206.433 | 8862581.556 | |||
| 11/07/2022 | 20459 | 207.957 | 4254592.263 | |||
| 11/07/2022 | 157983 | 208.731 | 32975949.573 | |||
| Total | 5450000 | 1093165508.584 | ||||
| Average | 200.581 |
| Date | Shares | Price | Proceeds | |||
|---|---|---|---|---|---|---|
| 11/08/2022 | 192320 | 189.578 | 36459640.96 | |||
| 11/08/2022 | 366242 | 190.45 | 69750788.9 | |||
| 11/08/2022 | 3107623 | 191.467 | 595007252.941 | |||
| 11/08/2022 | 376134 | 192.204 | 72294459.336 | |||
| 11/08/2022 | 78604 | 193.339 | 15197218.756 | |||
| 11/08/2022 | 198124 | 194.975 | 38629226.9 | |||
| 11/08/2022 | 67609 | 195.148 | 13193761.132 | |||
| 11/08/2022 | 8575 | 196.849 | 1687980.175 | |||
| 11/08/2022 | 4769 | 197.7 | 942831.3 | |||
| Total | 4400000 | 843163160.4 | ||||
| Average | 191.628 |
References:
11/08/2022
https://www.sec.gov/Archives/edgar/data/1318605/000089924322035394/xslF345X03/doc4.xml
11/07/2022 https://www.sec.gov/Archives/edgar/data/1318605/000089924322035393/xslF345X03/doc4.xml
11/04/2022
https://www.sec.gov/Archives/edgar/data/1318605/000089924322035390/xslF345X03/doc4.xml
https://www.reuters.com/markets/us/how-will-elon-musk-pay-twitter-2022-10-07/