Updated Nov 8, 2022 - Economy

Musk sells $3.95 billion of Tesla shares after Twitter takeover

Tesla CEO Elon Musk looks up as he addresses guests at the Offshore Northern Seas 2022 (ONS) meeting in Stavanger, Norway on August 29.

Tesla CEO and Twitter owner Elon Musk during an August event in Stavanger, Norway. Photo: Carina Johansen /NTB/AFP via Getty Images

Elon Musk has sold at least $3.95 billion worth of Tesla shares since completing his $44 billion takeover of Twitter, according to new filings with the Securities and Exchange Commission Tuesday.

Context: Tesla's stock is down 52% so far this year. The electric vehicle company's market cap has fallen below $600 billion for the first time since June last year

  • Musk's own net worth has dropped by $70 billion since he bid for Twitter in April.

The big picture: Musk has said publicly twice this year that he didn't plan to sell any more Tesla shares.

Worth noting: The National Highway Traffic Safety Administration reported Tuesday that Tesla informed the NHTSA on Nov. 1 that it's recalling just over 40,000 Model S and Model X vehicles due to a potential power-steering problem.

Between the lines: Investors are worried that Musk is too distracted by Twitter and is stretching himself and his Tesla team thin.

  • Tesla is also facing growing competition from legacy automakers including GM and Ford while facing a slowdown in demand.

Editor's note: This article has been updated with new details throughout.

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