Twitter and Tesla CEO (Chief Executive Officer), Elon Musk, has said that he will not sell any more Tesla stock for the next two years.
He made those comments in a Twitter Spaces audio chat. He said that the economy would be in a “serious recession” in 2023. According to him, the demand for big-ticket items would be lower.
Musk reportedly said, “I will not sell the stock until I don’t know, probably two years from now. Definitely not next year under any circumstances.”
The shares of Tesla dropped by almost 9 per cent on Thursday. Subsequently, analysts showed concern about the company’s outlook. Canaccord Genuity reportedly said, “Elon Musk is doing Elon Musk things.” Tesla also began to offer $7,500 discounts on some of its high-priced electric vehicles in the market.
Earlier, Musk said he would not sell Tesla stocks. However, he sold $3.6 billion in stock sales of Tesla last week. Over the past year, Musk has sold almost $40 billion of Tesla shares. Some experts said that he sold shares because he wanted to buy Twitter. Reportedly, Musk sold around $23 billion in Tesla shares to finance the Twitter deal. He bought Twitter in a $44 billion deal. A consortium of banks loaned $13bn to Musk to finance the deal.
Musk, who is also CEO of SpaceX, a major defence contractor, said that selling shares was important. However, he did not provide further details about the sales.
This year, Tesla was one of the worst-performing stocks among major carmakers. The stock was down nearly 70% year-to-date.
Earlier this month, Musk sold 19.5 million of his shares in Tesla in a transaction worth $3.95bn. According to filings published by the US Securities and Exchange Commission, he sold Tesla stocks a lot of times since the start of this year.