Shares of electrical car maker Tesla Inc TSLA are down 71.7% year-to-date, making the inventory one in all 2022’s worst performers in the whole S&P 500. Controversial Tesla CEO Elon Musk has been among the many sellers, dumping roughly $40 billion value of Tesla inventory prior to now yr. Musk just lately mentioned he won’t be promoting any extra Tesla shares for some time, nevertheless it’s definitely not the primary time Musk has mentioned he is accomplished promoting.
What Occurred? On Dec. 22, 2022 Musk mentioned in a Twitter Areas chat that he won’t be unloading any extra Tesla inventory for the foreseeable future.
“I will not promote inventory till, I do not know, in all probability two years from now. Undoubtedly not subsequent yr below any circumstances and possibly not the yr thereafter,” Musk mentioned.
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Musk’s Previous Pledges: Musk has repeatedly made related statements over the previous yr.
On Dec. 22, 2021, Musk tweeted that he was “virtually accomplished” promoting Tesla inventory after promoting practically 1 million shares value about $1 billion. Musk in the end offered about $22 billion of Tesla inventory in 2021.
He resumed his promoting in April 2022, dumping one other $8.4 billion in Tesla inventory. On April 28, 2022, Musk tweeted “no additional TSLA gross sales deliberate after at present.”
Musk subsequently offered $6.9 billion in Tesla inventory in August 2022. When requested by a Twitter follower if he was completed promoting inventory, Musk replied “sure” on Aug. 9, 2022, including that it is “necessary to keep away from an emergency sale of Tesla inventory” related together with his $44 billion buyout of Twitter.
Musk went on to promote one other $3.9 billion value of Tesla inventory in November 2022 and an extra $3.6 billion value of Tesla inventory in December 2022 earlier than making his newest pledge to cease promoting on Dec. 22.
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Benzinga’s Take: Tesla’s inventory did not react a lot to Musk’s newest pledge to cease promoting his Tesla shares, and the market has seemingly realized to take the whole lot Musk says with a grain of salt at this level. Musk’s tendency to bend the reality even price him and Tesla $40 million in 2018 when Musk paid a fraud settlement to the U.S. Securities and Change Fee after the SEC decided Musk’s declaration he had “funding secured” for a deal to take Tesla non-public was not factual.
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