Elon Musk said he needed cash in case he was compelled to proceed with his abandoned bid to acquire Twitter Inc., and sold $6.9 billion worth of shares in Tesla Inc., the billionaire’s largest sale in history.
Musk tweeted late Tuesday after the sales were revealed in a number of regulatory filings, “It is crucial to avoid an emergency sale of Tesla stock, in the (hopefully improbable) case that Twitter forces this deal to close *and* some equity partners don’t come through.
If the $44 billion deal doesn’t go through, Musk would definitely buy Tesla stock again, followers questioned him on the matter.
How Many Shares Did Elon Musk Sell?
According to the most recent disclosures, the CEO of Tesla sold 7.92 million shares on August 5. The transaction was completed just four months after the richest man in the world declared he had no further plans to sell Tesla stock after selling $8.5 billion worth of stock in response to his initial bid to acquire Twitter.
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The Twisted Twitter Deal
Elon Musk announced last month that he was canceling the deal to buy and take private the social network where he has more than 102 million followers, alleging the business had made “misleading claims” over the quantity of spam bots using the service. Since then, Twitter has filed a lawsuit to compel Musk to complete the transaction. A Delaware Chancery Court trial has been scheduled for October.
Elon Musk abandoned his intentions to use a margin loan secured by his Tesla stock to partially finance the purchase in May and boosted the equity portion of the deal to $33.5 billion. He had earlier disclosed that he had received equity commitments totaling $7.1 billion from investors such as Sequoia Capital, Binance, and billionaire Larry Ellison.
“I’ll estimate the likelihood that he’s buying Twitter at 75%. I’m astonished,” exclaimed Gene Munster, managing partner at venture capital company Loup Ventures and a former technology expert. In the near future, this will be a challenge for Tesla. Deliveries and gross margin are all that counts in the long run.
When Will Elon Musk Acquire Twitter?
The acquisition “should proceed on original terms,” Musk wrote in a tweet over the weekend, “if Twitter provides its technique of sampling accounts to ascertain the number of bots and how they are validated to be real.”
Musk, 51, has now sold shares of Tesla valued at over $32 billion during the last ten months. The disposals began in November after Musk, a frequent Twitter user, asked the site’s audience whether he ought to reduce his ownership. The current sales’ motivation was not immediately apparent.
Although they are still down approximately 20% for the year, Tesla shares have increased by about 35% from recent lows hit in May.
According to the Bloomberg Billionaires Index, Musk is the richest person in the world with a fortune of $250.2 billion; however, as Tesla share prices have fallen this year, Musk’s worth has decreased by about $20 billion.
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