Elon Musk isn’t exactly known as a conventional entrepreneur, whether you consider his mode of operation or the core products and services that he seeks to sell.
This has been borne out by his unusual relationship with the cryptocurrency market, with Musk’s actions directly responsible for considerable peaks and troughs in the price of Bitcoin (BTC) through 2021.
Recently, Musk even put what equated to a $25 billion decision in the hands of his Twitter followers, with this having a direct impact on his personal wealth and Tesla’s share price. But what exactly unfolded, and has it impacted Tesla’s appeal as an investment asset?
Musk’s $25 Billion Punt – How Did Twitter React?
Recently, Musk hit the headlines for selling a further $1.05 billion worth of Tesla stock this week, according to the company’s financial filings.
Incredibly, this means that the Tesla CEO has sold around $9.85 billion worth of stock in the electric vehicle company, with this now boasting a total market value of around $1.10 trillion in the last month alone.
The most recent move came after Musk set up a controversial Twitter poll, in which he asked followers to vote on whether he should sell 10% of his Tesla stock on the open market.
As you can imagine, Twitter users voted ‘yes’ in their droves, with more than 3.5 million urging Musk to push ahead with the sale, with the entrepreneur being true to his word if the most recent activity is anything to go by.
This number represented 57.9% of the total respondents to the poll, with this a relatively small majority given the scale of the potential outcome.
What Does This Mean for Musk and the Tesla Brand as a Whole?
Of course, this has helped Musk personally and his recent ascension to the richest man in the world, with his personal worth having now swelled to more than $300 billion.
However, the immediate impact of the recent stock sale was less positive for Tesla, with the company’s share value plunging by 6% in the aftermath. This should come as no surprise, of course, particularly given that the amount of stock referenced in the Twitter poll is equivalent to 80% of the average trading volume for Tesla during the past three months.
The estimated value of such stock was around $25 billion (based on the real-time value of Musk’s holdings), after the Tesla stock had previously surged by 74% through 2021 as a whole.
Undoubtedly, Musk’s unusual methods and continued desire to sell Tesla stock is having a negative impact on share values, with this being keenly felt by the MT4 web trader community.
The good news is that such price volatility is likely to be short-term, particularly when you consider that Tesla’s stock value has actually more than doubled in the year since November 25th, 2021.