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On April 4, the Yangtze River Delta Railway ushered in the peak of passenger flow during the Qingming Festival. It is expected to send 4.1 million passengers today, 365,000 more than the same period last year, an increase of about 9.8%, and is expected to set a new record for single-day passenger volume. This years Qingming Festival railway transportation will start from April 3 to 7. The Yangtze River Delta Railway is expected to send 17.6 million passengers in 5 days, with an average daily passenger flow of 3.52 million, a year-on-year increase of 6.8%.The yield on the two-year U.S. Treasury note fell to a six-month low of 3.6550% and was last at 3.6611%.On April 4, local time on April 3, U.S. Secretary of Health and Human Services Robert Kennedy Jr. said that about 20% of the layoffs in the Department of Government Efficiency were wrong and needed to be corrected. The U.S. Department of Health and Human Services laid off about 10,000 people on the 1st. Kennedy said that people who should not have been laid off were laid off, and the department is restoring their positions. Kennedy said that canceling the entire lead poisoning prevention and monitoring department of the Centers for Disease Control and Prevention was one of the mistakes. At present, it is unclear what other projects Kennedy may plan to restore.Bank of Japan Governor Kazuo Ueda: Will consider the impact of food costs on consumers.On April 4, local time on the 3rd, the automobile company Stellantis said that due to the impact of the US import automobile tariff policy, the company decided to lay off 900 employees in its five US factories and suspend production operations at two assembly plants in Canada and Mexico. Antonio Filosa, Chief Operating Officer of Stellantis Americas, said that the US factories that were laid off were powertrain and stamping parts factories, which produced spare parts for two assembly plants in Canada and Mexico. According to the plan, the assembly plant in Canada will stop production for two weeks, and the assembly plant in Toluca, Mexico will suspend production throughout April. Filosa said the company is "continuing to evaluate the medium- and long-term impact of tariffs on operations."

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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