Why 2022 April $TSLA sell-off ? Answer: Elon SOLD Tesla shares to help fund Twitter buy.

[firsttruck]

The answer is !!!!!! Elon selling Tesla shares to help fund the buying of Twitter.

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Tesla CEO Elon Musk offloads about $4B TSLA shares
By Maria Merano Posted on April 28, 2022
https://www.teslarati.com/elon-musk-sells-tesla-shares-twitter-buyout/

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Elon Musk Offloads $4 Billion of Tesla Shares, Pledges No More Sales
* Tesla co-founder tweets he doesn’t plan to sell any more stock
* Musk has to cover a $21 billion equity portion of transaction
By Cecile Vannucci and Dana Hull April 28, 2022
https://www.bloomberg.com/news/arti...15-million-tesla-shares-filing-shows-l2jrftji


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Elon SOLD Tesla Stock!! MASSIVE SALE!
2022 April 28
Meet Kevin

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[firsttruck]

Tesla stock crash explained | Elon Musk sells TSLA (Ep. 592)
We now know what caused this week's massive drop in Tesla stock price... Elon Musk sold 4.4 million TSLA shares on Tues & Wed.
Apr 28, 2022
Dave Lee on Investing

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[Sirfun]

My salt intake has been through the roof lately.

You know the old saying, "everything being said, needs to be taken with a grain of salt".

The shorts are not the only folks trying to influence us. Yes, the price of Tesla was affected by Elon adding more shares to be sold. But most stocks also took a hit this week.

 

[Ogre]

Naval gazing at share price from one week to the next is a bit of a waste.

On Monday, Tesla releases their proxy statement which includes all of the items up for vote on during the annual shareholders meeting. It is likely based on the board’s previous announcement there will be an item on the proxy to increase share count to accommodate the split. At that point we should know what Tesla thinks the split will look like.



Splits don’t increase the value of your shares, but often end up lubricating the system a bit to release un-realized value in a stock.

Share price is pretty beat up due to macros and Musk’s selling but the fundamentals and outlook are crushing it. So things could get really interesting fast.

…


.


Or they could just chill. Teslas share price has a lot baked in already.

 

[Crissa]

I would guess another 5:1. I think something under 10:1 is most likely.

-Crissa

 

[Ogre]

I would guess another 5:1. I think something under 10:1 is most likely.

-Crissa

Knowing Musk it’ll be 420 : 69 just to screw with everyone’s head. Works out to about 6.08 shares for every share you own. Then everyone has to scramble to get a multiple of 69 shares.

 

[Crissa]

Ehh, he always does money things in the simplest numbers.

-Crissa

 

[John K]

There are two ways to observe the price falling down a cliff. (When you do not short or squeeze)

1. Oh shit… shit… it is too late to sell… it keeps going down… shiiitttt… ok, now it is at the bottom… now…now…I should have sold ?… ahhhh…

2. Crap, I missed a squeeze opportunity. Damn hindsight. Wake me up when the event is over

 

[charliemagpie]

I squeeeezed my bank account and bought 3 a couple of months ago.

I squeeeezed my bank account and bought 3 a few days ago

Then I squeeeeezed the next day, and bought 2 more lol

I'm feeling like a used lemon

 

[Ogre]

Ehh, he always does money things in the simplest numbers.

-Crissa

If there was a simply way he could do it he would. (Much like he’s priced things at 69,420 or bit 54.20 for Twitter)


But you are right, something silly like 420:69 is unlikely.

 

[KrodEKid]

I would think this would be a good time for Tesla to buy some of their shares back.

Reasons:
1)Tesla has cash on hand. Unless they are planning a BIG purchase soon they could reinvest in themselves.
2)Financials are looking good and production is expected to increase, thus raising profits, multiples, and hence expected market value.
3)This is always seen as a bullish move by a company and will help bolster stock pre-split for momentum.
4)They could always sell shares back again (at a likely higher price)
5)shares have been diluted a little from Elon's stock compensation reward last year.

I'm not a finance expert so I could be missing something here legally or business opportunities ? Anybody else who knows more about stocks see something I don't?

 

[Crissa]

Buybacks are usually used to balance out sell offs like Elon is having right now.

I don't see them as useful to a growing company.

-Crissa

 

[firsttruck]

I would think this would be a good time for Tesla to buy some of their shares back.

Reasons:
1)Tesla has cash on hand. Unless they are planning a BIG purchase soon they could reinvest in themselves.
...

NOT A BIG PURCHASE.

8-10 BIG PURCHASES.

It is expected that Tesla will build 8-10 more Gigafactories in next 10 years. Elon has even answered this question a couple times this year. Their goal is 20 million vehicles shipping annually by end 2030 which can not be achieved with just current number of factories.

Unlike competitors, Tesla will probably no longer seek long-term loans for expansions.
Tesla probably will maintain very little loan type debt.

 

[Qball]

I knew Elon was selling just by the volume and Twitter news. Don’t care about prices except I am sad that I’m pretty tapped out buying at the moment. By the time CT comes out I’m sure it will be at least 2500 dollars a share.