In the same week that he lost the title of world’s richest man to France’s Bernard Arnault, Elon Musk sold further Tesla shares worth $3.6 billion.
The deal, which was disclosed in a regulatory filing, brings Musk’s proceeds from sales of his shares in the electric carmaker to more than $20 billion so far this year.
Tesla Shares Valued At $3.6 Billion Are Sold By Elon Musk
Despite the fact that the filing did not specify a reason for the selling of 22 million shares between Monday and Wednesday this week, the Tesla CEO has been raising money to pay for his $44 billion acquisition of Twitter.
This Monday, it was revealed by Forbes and Bloomberg, who track the wealth of billionaires, that Arnault, the CEO of luxury conglomerate LVMH, had surpassed Musk as the richest person in the world. Bloomberg estimates that Arnault, who oversees businesses including Louis Vuitton and Dom Pérignon, is worth $172 billion and that Musk is worth $161 billion. Last week, Arnault’s wealth momentarily surpassed Musk’s before Arnault recaptured the top spot, only to lose it once more this week. According to data provider Refinitiv, Musk owns ownership of more than 13% of Tesla, which accounts for the majority of his fortune.
Tesla’s stock price has halved this year, underperforming manufacturers and the larger tech-heavy Nasdaq, which is down around 30% this year.
According to VerityData, as of 23 November this year, Musk had sold 72.2 million Tesla shares at an average price of $268 each, netting pre-tax proceeds of $19.4 billion. With this week’s sales, the total would be close to $23 billion.
In addition to $7.1 billion from associates and about $4 billion from his existing interest in the social media site, Musk invested more than $20 billion of his own funds in the purchase of Twitter in October.
His rocket company SpaceX, which is apparently in discussions about a share issue that may value it at much to $150 billion, is one of the significant enterprises he also owns. Musk’s other business ventures include the tunneling company The Boring Company and Neuralink, a start-up creating interfaces to link the human brain to computers, in addition to Twitter, Tesla, and SpaceX.