JVTech News Tesla: Elon Musk has sold nearly $3.6 billion worth of stock again, and that’s not the only bad news for the company!
With his takeover of Twitter, Elon Musk seems less devoted to his initial baby: Tesla. The acquisition of the social network actually caused the billionaire to dump a large chunk of his stock several times.
Elon Musk has lost his number 1 spot
According to Forbes, Elon Musk is no longer the richest man in the world. The American billionaire got into a real mess with the takeover of Twitter ($44 billion) which forced him to balance his costs. And it is precisely his Tesla shares that are paying him. The latest information that reached us at the end of last week discovered that the businessman sold an additional 3.58 billion Tesla shares. And it’s not the first time it’s happened this year, since Elon Musk has parted with a total of 40 billion dollars of action over the last financial year. According to data from BloombergElon Musk has seen his fortune reduced this year by $110 trillion.
Elon Musk still has something $94 billion in Tesla shares, or 60% of his total wealth. The problem is that the stock’s value has been falling for quite some time. At the time of writing, the stock price is $151.79, down about 60% year-to-date. On January 3, 2022, the price of a Tesla share was $399.93, and in November 2021, it broke through $400 per share.
Tesla is not doing well and it’s not just because of Elon Musk
Tesla’s health has always been the subject of great debate among professionals. And it must be said that it is rather understandable, since until recently the car manufacturer had still not provided positive results. This situation therefore encouraged detractors to continue to say that the shares of the American firm were overvalued. However, some companies like Ark Invest maintain their bet that Tesla will continue to develop and that its value could quadruple by 2026.. The keys to this confidence: autonomous driving, the launch of the Cybertruck, but also that of the robot-taxi promised by the brand – of which we still know almost nothing.
Despite the confidence of some companies, the news is not good for Tesla. The end of this quarter turns out to be worse than expected. Indeed, Elon Musk’s company has chosen to lower the price of its vehicles in the United States – which had never happened before – and she also plans to reduce production at its Chinese factory (based in Shanghai) by 20%. However, analysts such as Toni Sacconaghi point out that the problem is deeper and that Tesla is facing a drop in demand for its cars, according to him, the automaker should adjust its prices more if it wants to increase sales.