In trouble with Twitter, Elon Musk gets rid of his Tesla shares

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The new boss of Twitter, Elon Musk, has just sold 19.5 million Tesla shares, for a total value of 3.95 billion dollars. These figures are provided to us by the US Securities and Exchange Commission (SEC), the US financial watchdog. The billionaire is forced to declare this type of operation to the authorities.

Why is Elon Musk selling his Tesla shares?

For the rest, he is not required to specify the reasons for this transaction. In terms of timing, however, we can not help but think that it falls right at the time of the takeover of Twitter for the sum of 44 billion dollars.

Concretely, Elon Musk had no reason to sell Tesla shares because their value has fallen by more than 50% since the start of the year. However, it is increasing this type of operation in 2022, and according to the BBChe has pocketed nearly $20 billion from the resale of Tesla shares since January.

In fact, Elon Musk probably needs cash to finance the takeover of the social network, but not only. The new boss of Twitter said it himself last week: the company is in great danger and lacks resources. We also know that many advertisers have decided to boycott the service, frightened by the risks of abuse if moderation proves to be too lax. In any case, this is how he justified the dismissal of half of the company’s workforce.

It must be added, and this is far from being a detail, that part of the takeover of Twitter is carried out in equity. Clearly, it is the company that supports 13 billion in debts contracted in its name with renowned financial institutions. However, today, the social network generates relatively little profit and must find ways to honor its commitments.

Very difficult beginnings for Elon Musk at Twitter

It is still too early to tell, and one can imagine that Elon Musk will speak in the coming days to further explain his strategy. Anyway, his debut at Twitter seems relatively complicated.

To cite just one example among many others, while nearly 3,700 employees of the social network learned of their dismissal on Friday by e-mail, the company seemed to backtrack two days later. Indeed, some employees would have been fired “by mistake”. On reflection, the management also felt that some of them would be essential to achieve the transformations desired by Elon Musk.

We do not know if the interested parties finally said yes, but in any case, this testifies to a real disorganization within the governing bodies which seem to lack direction.

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