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Elon Musk explains his recent Tesla (TSLA) stock sale

U.S. AIR FORCE ACADEMY, Colo. -- Tesla Inc. Chief Executive Officer Elon Musk poses for a photograph with U.S. Air Force Academy Cadets in Mitchell Hall during a tour hosted by Superintendent Lt. Gen. Richard Clark on April 7, 2022. Musk met with Academy senior leadership and delivered remarks to a crowd of cadets and faculty. (U.S. Air Force photo by Justin R. Pacheco)

A set of Form 4 SEC filings have revealed that Tesla CEO Elon Musk had sold about 7.9 million TSLA shares worth approximately $6.9 billion after the company’s 2022 Cyber Roundup (annual shareholder meeting). Musk has since explained the reason behind his TSLA stock sale.

According to the CEO, he is done selling TSLA for now. He noted, however, that he sold TSLA just in case his Twitter acquisition is forced to close, and some of his equity partners do not come through. Musk noted that his TSLA stock sale is also a way for him to avoid an emergency sale of the EV maker’s stock.

“In the (hopefully unlikely) event that Twitter forces this deal to close and some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk wrote, noting that if the Twitter deal does not close, he would simply be buying TSLA shares again.

While Elon Musk’s TSLA stock sale has received polarizing reactions from retail shareholders online, analysts have noted that the CEO’s efforts may suggest that a Twitter acquisition deal is still going through, albeit at a renegotiated price.

Tesla bull and Managing Partner of The Future Fund LLC Gary Black estimated that Musk might be looking to complete his Twitter buyout at a price of about $50-$51 per share, lower than his initial offer of $54.20 per share.

Fellow analyst Dan Ives from Wedbush Securities seemed to be in the same boat, noting on Twitter that the chances of Musk’s Twitter deal going through have increased.

“With the chances of a Twitter deal now more likely in our opinion and the Street seeing through this poker move by Musk, we are raising our price target from $30 (fair value fundamentally) to $50 reflecting the higher chances the deal now ultimately closes-Delaware case looming,” Ives noted.

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Elon Musk explains his recent Tesla (TSLA) stock sale
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