Elon Musk Sells Nearly $7 Billion in Tesla Stock as Twitter Case Looms

“It is important to avoid an emergency sale of Tesla stock,” former Twitter suitor Elon Musk tweeted ahead of the courtroom showdown
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Even the richest man in the world has to liquidate his cash flow sometimes. Elon Musk, the Tesla CEO and SpaceX king, sold almost $700 billion of Tesla stock Tuesday because there’s a chance he might be forced to go through with his $44 billion deal to buy Twitter if he’s on the losing end of the upcoming court case between himself and the social media monster, according to the Wrap.

“In the (hopefully unlikely) event that Twitter forces this deal to close and some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk, the largest shareholder of both Tesla and Twitter, tweeted Tuesday.

Twitter sued Musk in early July when he backed out of the deal. Musk claimed that the social media company had withheld important information regarding the number of spambot accounts on the platform. Twitter disagreed, claiming Musk’s withdrawal had nothing to do with spambots and fake accounts. The company’s suit against Musk intends to force him to go through with the $44 billion deal, or pay a $1 billion penalty—for starters.

Dan Ives, an industry analyst with Wedbush, told the Associated Press that although Musk said in the spring that he didn’t plan another massive sale of his Tesla stock after lining up financing to acquire Twitter that “the situation has drastically changed” as of Wednesday.

Wedbush raised its target price for shares of Twitter, “With the chances of a Twitter deal now more likely in our opinion and the Street seeing through this poker move by Musk,” Ives wrote to clients.

“We can also see Musk trying to resolve this powder keg situation before the Twitter deal officially heads to court in October,” Ives wrote, according to AP. “At a minimum, we see Twitter getting a massive settlement from Musk in the $5 billion to $10 billion range that is starting to be factored into the stock.”

Musk countersued Twitter late last month, accusing the company of fraud and claiming Twitter would not share important information regarding the number of fake accounts in Twitter’s overall user base. His allegations against Twitter are “fraud, breach of contract and violation of a securities law in Texas,” Musk’s current state of residence.


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