Tesla CEO Elon Musk sold over $4 billion in Tesla stock just days after agreeing to buy Twitter for £3.2 billion.
The deal has prompted speculation that it may help him fund his $44 billion purchase of the social networking giant.
The board of directors of Twitter accepted Mr Musk’s purchase offer on Monday.
Tesla’s stock plummeted earlier this week amid speculation that Mr Musk may sell a portion of his stake in the company to fund the transaction.
He did, however, say that he had no plans to sell any more of his shares in the automaker on Twitter.
Mr Musk sold a total of 4.4 million Tesla shares on Tuesday and Wednesday, according to filings with the US Securities and Exchange Commission.
In after-hours trading, the electric carmaker’s stock fell 2.6 per cent.
It was his first Tesla stock sale since selling $16.4 billion in equity in November and December of last year.
This came after he asked his 83 million Twitter followers if they thought he should sell 10% of his share in Tesla.
Since Mr Musk announced earlier this month that he had purchased a 9.2 per cent interest in Twitter, Tesla’s stock has dropped by roughly 20%.
The stock market value of the automobile dropped by more than $125 billion after the board of the social media company accepted his buyout offer on Tuesday.
Mr Musk stated that he would contribute $21 billion of his assets to help finance the $44 billion deal.
Investors feared he would have to sell Tesla stock to help fund the buyout.
Mr Musk is the world’s richest individual, with a net worth of about $250 billion, thanks mostly to his Tesla shareholding.
He also owns more than 40% of the rocket company SpaceX, which is valued at more than $100 billion.