Tesla Inc (TSLA.O) shares fell on Friday, snapping an 11-week winning streak, as papers revealed that CEO Elon Musk sold another block of company stock for $700 million, taking advantage of the electric-car maker’s stratospheric rise to over $1 trillion in value.
The second round of large stock sales this week came just days after the world’s richest person and Tesla’s largest shareholder, Elon Musk, announced that he would sell 10% of his shares if Twitter users supported the move.
The stock of the electric vehicle manufacturer fell 2.8 percent to $1,033.42 on Friday. Following a strong run in October, the stock has gained more than 46% this year.
According to two separate filings on Friday, Musk’s trust sold 587,638 and 52,099 shares on Thursday in several transactions totaling around $687 million. Musk announced earlier this week that he has sold $5.1 billion worth of Tesla stock. According to Reuters calculations, he has now sold nearly 3% of his stock.
The stock sales were large by capital market standards, topping most firms’ initial public offerings. It was the first time Musk paid out on a stake of that scale since the company was created in 2003.
He has mitigated any criticism of cashing out at a time when Tesla’s valuation has become inflated and shares are at record highs by getting Twitter users to approve the move. This week, Tesla shares plunged 15.4%, losing $187 billion in market worth, more than the combined market capitalizations of Ford Motor Company (F.N) and General Motors Company (GM) (GM.N).
Despite its losses this week, Tesla remains the most valued automaker in the United States. The stock’s recent robust increases have highlighted the desire for shares of electric vehicle (EV) manufacturers.
Following Rivian Automotive Inc.’s (RIVN.O) market launch on Wednesday, the two most valuable U.S. automakers are electric vehicle businesses. In a veiled jab at the Irvine, California-based rival, Musk tweeted on Thursday: “There have been hundreds of automotive startups, both electric & combustion, but Tesla is (the) only American carmaker to reach high volume production & positive cash flow in past 100 years.
