Musk Sells $6.9B of Tesla: Will you hold, buy or sell?

On Tuesday evening, according to documents released by Tesla, Elon Musk sold 7.92 million shares of Tesla stock, worth about $6.88 billion.

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Musk just made a big pie about "buying back shares" at the shareholder meeting shortly after ......

According to the documents, the transaction took place between August 5 and 9. And $Tesla (TSLA)$ just held its 2022 annual meeting of shareholders in Austin, Texas, on August 4.

Musk was also asked how Tesla plans to use its capital in coming years.

He said Tesla will primarily increase its capital expenditures and research and development spending “as fast as we can do so without wasting it.” He added that “a sort of share buyback is possible,” depending on what Tesla’s future cash flow looks like. He “wouldn’t want to commit” to Tesla share buybacks just yet, and that a force majeure event somewhere could change the equation. However, he reiterated that if Tesla’s future cashflow is looking solid, and the world is “relatively stable,” then a “share buyback is on the table.”

In April this year, after the announcement of the acquisition of Twitter, Musk sold a total of 4.4 million shares of Tesla stock, worth about $4 billion, through a series of transactions from April 26 to April 27, when he also vowed to announce on Twitter: "No further TSLA sales planned after today"

Cash out in case the deal to buy Twitter is forced to be executed

In July, Musk announced the suspension of the acquisition of Twitter because $Twitter (TWTR)$ failed to provide him with all information in a timely manner, and on July 12, Twitter filed a lawsuit against Musk for performance at the promised price.

So according to Musk, the sale, mainly because he needed the cash in case the deal to buy Twitter was forced to be executed and some equity partners did not reach an agreement, so it was important to avoid an emergency sale of Tesla shares. Musk has reportedly sold about $32 billion worth of Tesla stock in the past 10 months, and Tesla stock has fallen about 20% during the year.

CEO of TrueMark Investments has said before that Musk could sell Tesla shares regardless of how the Twitter deal ends up.

A user on Twitter asked Musk if he would buy Tesla stock again if the Twitter deal was cancelled, and Musk replied, "Yes."