• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On April 26, according to the Wall Street Journal, in order to simplify the negotiations on reciprocal tariffs, US negotiating officials plan to use a new framework developed by the Office of the United States Trade Representative (USTR), which lists major categories of negotiations, such as tariffs and quotas, non-tariff trade barriers, digital trade, product origin principles, economic security and other commercial issues. In these categories, US officials will put forward specific requirements for individual countries, but people familiar with the matter emphasized that this document may also be adjusted at any time. People familiar with the matter said that the United States initial plan is to negotiate with 18 major trading partners in turn over the next two months. The initial plan is to alternately participate in the talks with six countries per week for three weeks (six countries in the first week, another six countries in the second week, and another six countries in the third week) until the deadline of July 8. If US President Trump does not extend the 90-day suspension period he set by then, those countries that cannot reach an agreement will begin to face reciprocal tariffs.On April 26, after the United States announced additional tariffs on goods from many countries, Peruvian business people expressed concerns that the US governments extreme measures would disrupt the global trade order and may even trigger a global economic recession. Alvaro Barrenechea Chavez, vice president of the Peruvian-Chinese Chamber of Commerce, said that the negative impact of the US tariff policy has begun to emerge and hoped that the US government would rethink. Recognizing the importance of countries working together to promote development, I think this is the best way to become a true "world citizen."Market news: Musks xAI company plans to raise about US$20 billion in a financing round.Conflict situation: 1. Ukrainian top commander: Russia tried to use air strikes as a cover to increase ground attacks, but was repelled by Ukraine. 2. Ukrainian Air Force: Russia launched more than 103 drones in the night attack on Ukraine. 3. Local officials said Ukraine launched an attack in the Belgorod region of Russia, killing two people. 4. The local governor said that Russia launched an attack on the Dnipropetrovsk region of Ukraine, killing one person and injuring eight people. Peace talks: 1. Trump: ① The situation between Russia and Ukraine is gradually becoming clear, and they are "very close" to reaching an agreement. ② Ukraine is unlikely to join NATO. ③ Ukraine has not yet signed the rare earth agreement and hopes that the agreement can be signed immediately. ④ It is foreseeable that the United States will conduct commercial cooperation with Ukraine and Russia after reaching an agreement. 2. Russian Foreign Minister: Russia is "ready to reach an agreement on Ukraine." 3. Russian Presidential Assistant Ushakov: Russia and the United States will continue to maintain active dialogue. 4. Russian Presidential Assistant: Putin discussed the possibility of resuming direct negotiations between Russia and Ukraine with the US envoy. 5. The differences between the United States, Europe and Ukraine are clear. The documents show that European countries and Ukraine have raised objections to some of the US proposals to end the Russia-Ukraine conflict. 6. Market news: As part of the peace agreement, the United States asked Russian President Putin to abandon the demilitarization requirement. Other situations: 1. President of Hungarys OTP Bank: We hope to return to all business areas in Russia after the (Russia-Ukraine) conflict ends. 2. Ukrainian President Zelensky: US ground forces are not necessary for Ukraine. 3. Trump said Crimea will remain in Russia, Zelensky: Never recognize it. Agreeing with Trumps view, Crimea cannot be recovered by force. 4. NATO Secretary-General Rutte met with Trump and senior US officials to discuss defense spending, NATO summit, and the Ukrainian conflict.Rising global trade risks, overall policy uncertainty and the sustainability of U.S. debt top the list of potential risks to the U.S. financial system, according to the Federal Reserves latest financial stability report released on Friday. This is the first time the Fed has conducted a semi-annual survey on financial risks since Trump returned to the White House. 73% of respondents said that global trade risks are their biggest concern, more than double the proportion reported in November. Half of the respondents believe that overall policy uncertainty is the most worrying issue, an increase from the same period last year. The survey also found that issues related to recent market turmoil have received more attention, with 27% of respondents worried about the functioning of the U.S. Treasury market, up from 17% last fall. Foreign withdrawals from U.S. assets and the value of the dollar have also risen on the list of concerns.

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

Aria Thomas

Jul 12, 2022 11:03

10.png


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.