Elon Musk’s plan of buying another $20 million of Tesla stock with his own money seems to cover the cost of the fine the company has to pay for his “Funding secured” tweet to take Tesla private.
Last month both Musk and Tesla agreed to pay $20 million to settle the federal lawsuit.
Elon Musk is increasing his investment in Tesla by buying another $20 million worth shares of the automaker’s stock.
Unlike those previous instances, Musk will buy his latest round of $20 million shares directly from Tesla (instead of on the open market). That means the money will go directly to the Tesla.
The $20 million will be added to his $9 billion which he presently holds in Tesla stock. At present, he controls over 33 million shares of the company. (It’s a drop in the bucket for the entrepreneur, whose net worth is estimated to be $20.1 billion.)
It’s actually a good time for Musk to buy shares. Tesla shares are down by 14% year to date and down by 22% in the past year.
Musk blames short sellers for the company’s stock woes.
“Short sellers are desperately pushing a narrative that will possibly result in Tesla’s destruction,” Musk said in a interview with the New York Times in August.
Musk’s $20 million commitment will increase his Tesla stake by only 0.2%. Still, Tesla shares initially rose on the news this Wednesday. But the stock turned out to be negative on a report of another executive(Gilbert Passin) departures from the company.
Gilbert Passin, Tesla’s vice president of engineering, left the company a month ago. Passin’s departure was first reported by Business Insider. Tesla didn’t comment anything on his departure.
Also, the director of field performance engineering and senior vice president of engineering have both left the company.
And too, the chief accounting officer left after less than a month at the company.
Departure of Senior executives is the major problem the company is facing.