By Tom Brown for Web
Elon Musk sold almost $7 billion worth of Tesla stock
The Tesla CEO sold around 7.9 million shares between Aug. 5 and 9, according to filings released on the Securities and Exchange Commission’s website.
He now owns 155.04 million Tesla shares, or nearly 15% of the automaker, according to Portal.
“In the (hopefully unlikely) event that Twitter forces this deal through and some equity partners don’t pull through, it’s important to avoid a fire sale of Tesla shares,” Musk, the world’s richest man, wrote on Twitter late Tuesday .
The money could serve as insurance if Musk is forced to buy Twitter, a company he initially agreed to and then left.
Musk, the richest man in the world, holds most of his wealth with automaker Tesla – but if a court rules against him, the share price could plummet.
Dan Ives, an analyst at Wedbush Securities, said investors are “more likely now” to see the chances of a Twitter deal.
His feud with Twitter began when Musk bought a 9.1% stake in the company, a move that may have violated security laws, and then signed an agreement to buy the social media giant on April 25.
Musk said his recent decision to sell millions of shares in Tesla was intended to “avoid a fire sale of Tesla stock.”
But in early July, Musk tore up his agreement to buy Twitter for $44 billion after the prices of tech stocks in the United States, including Tesla, began falling.
Twitter then sued Musk to force him to complete the transaction, dismissing his claim that he was misled about the number of spam accounts on the social media platform because of the buyer’s remorse following a slump in tech stocks.
Musk has filed a countersuit, accusing Twitter of fraud and alleging the social media platform misled him about important aspects of its business before agreeing to a $44 billion buyout.
The two sides are now locked in a legal battle over Musk’s efforts to break out of April’s agreement to buy the company, and a judge has ordered a trial to begin Oct. 17.
The move comes after Musk sold around $8.5 billion worth of shares in the electric carmaker in April as he prepared to fund the Twitter deal.
He tweeted at the time, “No further TSLA sales are planned after today.”
Musk sold about $8.5 billion worth of shares in the electric carmaker in April as he prepared to fund the Twitter deal. Now he’s preparing for a fire sale should he be forced to acquire Twitter
But legal experts have since suggested that if Musk is forced to complete the acquisition or settle the dispute with a hefty penalty, he’s likely to sell more Tesla stock.
Tesla shares are up nearly 15% since the automaker reported better-than-expected earnings on July 20, also helped by the Biden administration’s climate bill that, if passed, will cap tax credits for electric vehicles would cancel.
Musk also teased on Tuesday that he could launch his own social media platform. When asked by a Twitter user if he’d considered starting his own platform if the deal didn’t go through, he replied, “X.com.”