Tesla shares dropped greater than 7% on Wednesday to shut at $177.59, their lowest since November 2020, after CEO Elon Musk disclosed the sale of near $4 billion value of inventory within the electrical automobile firm.

The inventory is down 50% year-to-date. As of Tuesday’s shut, it was the 465th worst performer this 12 months within the S&P 500.

Musk apparently offered the newest batch of Tesla shares a minimum of partially to finance his $44 billion acquisition of Twitter, which closed in late October. His gross sales have been revealed by means of monetary filings with the SEC on Tuesday evening, revealed as votes from the U.S. mid-term elections have been being tallied.

In response to an evaluation by Ben Silverman, Director of Analysis for VerityData, Musk’s newest Tesla inventory gross sales have been very well-timed. Silverman tracks insider gross sales by firm executives.

Tesla closed at $215.31 on Nov. 3, the day earlier than his first sale on this batch, and closed at $191.30 on Nov. 8, the day of his most up-to-date disclosed sale. Shares declined about 11% over these three buying and selling days.

VerityData’s InsiderScore notes that Musk had 267.6 million shares of Tesla pledged as collateral for private indebtedness as of Mar. 31. He holds about 19.7% of Tesla’s excellent shares following the newest sale of about 19.5 million shares, a decline from about 22.4% possession on the finish of 2020.

Musk nonetheless owns 445.6 million Tesla shares and holds exercisable choices for 177.3 million extra Tesla shares at $23.34, in addition to some smaller tranches of choices.

Musk offered $8.5 billion value of Tesla shares at $294.36 per share in April and $6.9 billion value of his inventory at $289.79 per share. Late final 12 months, Musk offered $6.6 billion value of Tesla shares at $357.23.

“No matter his reasoning for promoting TSLA shares proper now, it is laborious to disregard the professional timing of his earlier gross sales,” InsiderScore wrote. “In different phrases, Musk isn’t any dummy, so following his lead will not be a foul thought.”

Musk has pulled dozens of Tesla workers, principally Autopilot engineers, to Twitter to assist him with code assessment and different work. He hasn’t made clear how he or these workers will divide their schedules and duty on the firms.

WATCH: Musk sells extra Twitter shares