Elon Musk sells Tesla shares worth $9.8 billion, cites possibility of forced deal on Twitter

Tesla boss Elon Musk has sold $6.9 billion ($9.8 billion) worth of shares in the electric vehicle maker, saying the funds could be used to fund a possible deal on Twitter. he was losing a legal battle with the social media platform.

“In the (hopefully unlikely) event that Twitter forces this deal *and* certain financial partners don’t materialize, it’s important to avoid a fire sale of Tesla stock,” he said. he said in a tweet on Tuesday evening.

Shares of the microblogging site rose 3.5% to $44.35 pre-market, but were still trading significantly below Mr. Musk’s offer price of $54.20 per share.

Tesla shares rose 1.6% to $863.1.

In early July, Mr. Musk tore up his April 25 deal to buy Twitter for $44 billion.

Twitter sued Mr Musk to force him to close the deal, dismissing his claim that he was misled about the number of spam accounts on the social media platform as buyer’s remorse, to following a fall in tech stocks.

Both sides will go to trial on October 17.

Loading

Following the stock sale announcement on Tuesday, Mr Musk took to Twitter and said “yes” when asked if he was done selling Tesla shares, adding that he would would repurchase if the Twitter deal didn’t go through.

“The removal of the ‘fire sale’ risk, the fact that Musk has already raised funds in the event of a Twitter move against him, and the comment that he will buy back shares if the Twitter deal is dropped all create a positive bias for Tesla. “said Mark Taylor, sales trader at Mirabaud Securities.

Leave a Comment