Musk is selling Tesla shares again

Documents from the U.S. Securities and Exchange Commission (SEC) revealed that Musk made sales of Tesla shares between August 5 and 9. The total number of shares sold was about 7.92 million, with a value of nearly $7 billion. Musk made the sales at an average price of $869 per share. In April, Musk sold a block of 9.6 million shares worth about $8.5 billion at the time, at an average price higher than the August transactions, i.e. $883 per share. The billionaire declared in April that he does not intend to make any more sales this year:

• Elon Musk is making potential further sales of the company's shares contingent on the outcome of a dispute with Twitter. The CEO indicated that he intends to avoid a situation in which he would be forced to suddenly sell a sizable stake in the face of finalizing an acquisition from which he clearly wants to withdraw;
• This could be decided by the outcome of a lawsuit initiated by Twitter, which wants to force Elon Musk to close the takeover bid. Musk in April agreed to acquire Twitter for the astronomical sum of $44 billion, at $54.20 per share. Currently, Twitter shares are worth about $42;
• Asked on Twitter, Musk did not rule out buying back the shares he sold if he does not ultimately have to take over Twitter. Although the latest deal is a big one for Musk it still represents only 3% of all shares (stocks and options) in Tesla;
• Until the Twitter deal, Musk had been selling his shares solely for tax optimization purposes (raising cash to pay for the exercise of his upcoming options). Wedbush Securities analysts point out that two large non-tax-related sales since April of this year, despite Musk's explanations, are increasing uncertainty for Tesla shareholders and raising concerns about the company's continued health.

Tesla stock price chart (TSLA.US), D1 interval. The electric car maker's shares have been moving in a downtrend since November 2021, with successive peaks drawn lower and lower. At the same time, the declines have slowed down around $700 per share, where the price had been consolidating for several months. Currently, the price has braked declines near $840, which coincides with the 23.6 Fibonacci retracement. A climb below this zone could potentially indicate a retest of the area around the 38.2 retracement, which coincides with the formation phase of the local bottom between May and July at $700 per share. Source: xStation 5