this post was submitted on 22 Nov 2023
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He didn't sell the Tesla stock. He used it as collateral to borrow the money. Rich people rarely sell their things while they are alive. They borrow against their fortune because if they sell, they have to pay capital gains taxes.
Borrowing with stocks as collateral should be taxed at the capital gains rate
He did sell the stock, like $23 billion worth. He entered the agreement to buy Twitter to show that he had another use for that cash, so that Tesla investors didn't get spooked and sell off when they see the biggest shareholder selling (along with the downward price pressure that comes from selling a significant percentage of a company's stock).
There was some speculation at the time that he entered the agreement with Twitter with no intention to close, just to cover his desire to cash out of Tesla at its high. Then the courts actually held him to that.