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On March 22, Elon Musk held a press conference to announce Project Terafab, a grand plan aimed at eventually manufacturing its own chips for robotics, artificial intelligence, and space data centers. The project will be based in Austin and jointly operated by Tesla and SpaceX. Musk stated that he will first build an "advanced technology wafer fab" in Austin, equipped with the full suite of equipment needed to manufacture and test various types of chips. Musk said that although the semiconductor industry is increasing production, its pace of development is still not meeting his anticipated chip demand. "This pace is far below our expectations," Musk said. "Either we build a terawatt-scale factory, or we dont have any chips available, and we need these chips, so were building a terawatt-scale factory." Musks project aims to support 1 terawatt of computing power annually in the future.According to Al Jazeera: The Israeli military reports a new round of missile attacks by Iran.On March 22, Apple CEO Tim Cook, in an interview with the media in Beijing, said that the development of Chinas robotics industry is impressive. Speaking about the opportunities in China during the 15th Five-Year Plan period, he expressed great anticipation for artificial intelligence (AI) and eagerly awaited the next developments in the field.March 22nd - A new round of refined oil price adjustments will take place in China at midnight on March 23rd. According to Longzhong Information, the expected increase is around 2000 yuan/ton. For a 70-liter fuel tank, filling up a car will cost approximately 106 yuan more. For a 50-liter tank, the increase is expected to be around 75 yuan more. This will mark the fifth consecutive price increase this year, potentially the largest increase this year. However, the final adjustment amount will depend on the official data released by the National Development and Reform Commission that evening.On March 22, Hong Kong Financial Secretary Paul Chan Mo-po stated that during his recent visit to Beijing, he met with several central government ministries and financial regulatory agencies. They engaged in in-depth discussions on the macroeconomic situation, the current state and development of the financial market, and how Hong Kong can better play its role in the new phase of the nations 15th Five-Year Plan. Chan and his delegation deeply appreciated the concern, understanding, and support shown by the various ministries and agencies for Hong Kongs situation. They also realized the need for a more accurate understanding of the nations development direction, key areas, and strategies in order for Hong Kong to accelerate its integration into and serve the overall national development strategy, and to maximize its own advantages.

Musk's gain from selling Tesla shares exceeds Twitter's loss

Aria Thomas

Jul 12, 2022 11:03

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Elon Musk's decision to quit the $44 billion acquisition of Twitter Inc (NYSE:TWTR) may put him in a better financial position than before he announced the deal, thanks to the selling of billions of dollars worth of Tesla Inc (NASDAQ:TSLA) shares.


After Musk renounced his agreement to acquire the social media platform on Friday, April 25, and Twitter pledged to compel him to finish the acquisition, legal experts expect the parties will engage in a long court battle that may cost Musk billions of dollars.


Regardless of the ruling, it appears that Elon Musk has around $8.5 billion in cash after selling Tesla shares in late April to fund the Twitter acquisition. During the final week of April, Musk sold 9.6 million Tesla shares at an average price of around $885 per share.


Sam Abuelsamid, an analyst at Guidehouse Insights, stated, "Since he sold so many Tesla shares at such a high price a year ago, he is almost certainly in a better financial position now than he was a year ago."


Depending on the outcome of the case surrounding this situation, he might find himself in a far worse position.


According to Abuelsamid, if Musk loses his legal battle against Twitter and is forced to complete the acquisition or pay a substantial fee, he may be forced to sell further Tesla shares, alarming investors and decreasing the value of his remaining Tesla stake.


On Monday, Tesla's stock price fell by 6.5%. After selling Tesla shares in April, Musk announced, "No more TSLA sales are planned."


Brian Quinn, a legal professor at Boston College School of Law, stated that he would not be surprised if Musk and Twitter agreed to compensate Twitter for more than $1 billion.


Quinn noted, "Musk would be penniless, but he would not be imprisoned as the company's owner."


At the time Musk sold his shares in April, Tesla investors fretted that Musk's acquisition of Twitter may become a diversion as Tesla faces intensifying economic and competitive challenges. Musk's decision to sell a substantial portion of his Tesla shares was rationalized by the acquisition of Twitter, although CEO stock sales often cause investors worry.


Musk cited upcoming option expirations and tax issues as the basis for selling about $16 billion worth of Tesla shares in December.


Inflation and potential recession worries have weighed severely on growth businesses since Tesla stock was sold in April, causing a 19% decline in the stock price. If Musk had not sold these Tesla shares, their current market value would be around $1.6 billion lower.


It is unknown how much income tax Musk may owe on his Tesla share sale gains.


Musk does not get a salary from Tesla; instead, he receives billions of dollars in stock options after hitting several stock and performance milestones over the course of prior years. He still holds around 16 percent of Tesla, which is worth approximately $115 billion.


Musk's investment in Twitter shares prior to announcing his takeover of the company has not performed as well. Between January and April, Musk purchased 73 million Twitter shares for a total of $2.64 billion, or around $36 per share. On Monday, Twitter's stock price fell 9.5% to $33.50. At this price, the value of his Twitter shares has plummeted by around $200 million.


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