[ad_1]
A rumor Future Fund co-founder Gary Black highlighted in a tweet on Tuesday became a reality, with Tesla Inc. TSLA CEO Elon Musk disclosing the sale of another tranche of shares in the electric vehicle company.
‘Soppiness’ On Full Display, Says Black: Musk sold 22 million shares of Tesla, representing 0.8% of the float, for $3.58 billion between Monday and Wednesday at an average price of $162.81, Black said in a tweet.
During the third-day period, the stock fell 12.4% as opposed to the 1.5% advance by the Nasdaq 100 Index, and since the Twitter deal closed, the stock has shed 29% versus the Nasdaq 100’s 4% rise, the fund manager noted.
See Also: How Did Elon Musk Make His Money
The average price Musk received with the latest selling spree was $163 per share, he said.
Black said “soppiness was on full display” yet again, as in three days of trades Tesla stock fell 12% even as only 0.8% of the float was sold.
Since Musk bought Twitter, he has cumulatively sold 94 million shares for $23 billion at an average price of $244, Black noted. He expects some of the proceeds from the recent sales to be used for retiring the $3 billion of the $13 billion leveraged buyout debt, which carries a high-interest rate of 11.75%.
Following the recent liquidations, Musk now holds 423.6 million Tesla shares or a roughly 13.4% stake.
“Based on past patterns, we believe Elon is again done selling $TSLA shares for the time being,” Black said. Tesla stock’s trading window is closed starting Friday and until end-January, given the company’s upcoming fourth-quarter earnings release.
Twitter Nightmare Continues: Another Tesla bull and Wedbush analyst Daniel Ives said the Twitter nightmare continues, with Musk continuing to sell stock and the overhang growing.
“Self-inflicted issues” from Musk around Twitter continue to plague the Tesla story and investor frustration continues to build, he said. “Another Tesla stock sale fuels the black cloud around the story,” Ives added.
Buyback, Need Of The Hour: Gerber Kawasaki Wealth and Investment Management’s Ross Gerber called upon Tesla’s board to immediately announce a buyback to stop the dilution stemming from the CEO’s stock sale.
The company could also take advantage of the low stock price Musk created, he said, tagging Investor Relations Head Martin Viecha.
Price Action: Tesla closed Wednesday’s session down 2.58%, at $156.80, according to Benzinga Pro data. The stock has shed about 55.5% for the year-to-date period.
Read Next: Tesla Gets Some Friendly Advice From Former Ford CEO As Stock Sinks Further
[ad_2]
Image and article originally from www.benzinga.com. Read the original article here.