Elon Musk pledges to not sell more Tesla shares
In a respite to Tesla shareholders, Elon Musk has announced that he will not be selling more shares in Tesla. Speaking in a Twitter Spaces call, the Tesla and Twitter CEO said that he would not sell Tesla stock for at least two years. Musk's comments should ease some concerns of Tesla investors who have been reeling under falling share prices.
Why does this story matter?
Tesla stock has been touching new record lows every day recently. In spite of that, Musk rarely said anything to improve investor confidence in the company which is the main driver of his wealth. This is the first time Musk has expansively addressed some of the issues. That's certainly going to help Tesla and its freefalling stock.
Musk has sold shares worth almost $40bn in a year
Tesla shares have plunged by over 60% this year. As a result, investor faith in the world's most valued carmaker has been on the downswing. Adding to their worries, Musk has been selling Tesla shares in bulk. Over the past year, he has sold Tesla shares worth roughly $40 billion. Musk's shareholding in the company has come down to 13.4%.
Musk's pledge should ease some concerns of investors
Musk selling shares hasn't helped an already weak Tesla stock. Therefore, his pledge should ease some worries. "You certainly have my commitment I won't sell stock until, I don't know, probably two years from now. Definitely not next year under any circumstances and probably not the year thereafter," he said. However, it shouldn't be forgotten that Musk has broken such promises before.
Musk won't suppress his views 'to boost the stock price'
Many have pointed at Musk's takeover of Twitter as one of the reasons why the Tesla stock is underperforming. Addressing concerns about his handling of Twitter and views damaging Tesla's image, Musk said, "I'm not gonna suppress my views just to boost the stock price." He added that the acquisition of Twitter has had no effect on the time he spends on Tesla-related matters.
Stormy at first, but there will be sunshine
Musk also addressed Tesla's future. "There is stormy weather ahead, but then there is going to be sunshine thereafter," he said. He, however, reiterated that the economic downturn could impact Tesla's plans. "I think there is going to be some macro drama that's higher than people currently think," Musk said. According to him, homes and cars will be "disproportionately impacted."
