Elon Musk has sold nearly $7 billion in Tesla stock as the billionaire prepares his finances for his legal battle with Twitter.
Elon Musk has sold nearly $7 billion in Tesla stock as the billionaire prepares his finances for his legal battle with Twitter.
Musk disclosed in a series of regulatory filings that he recently sold approximately 8 million shares of his company Tesla Inc.
“It is critical to avoid an emergency sale of Tesla stock in the (hopefully unlikely) event that Twitter forces this deal to close and some equity partners do not come through,” Musk tweeted late Tuesday.
Musk is by far Tesla and Twitter’s largest individual shareholder.
Tesla stock rose 4% to $883.07 on Wednesday. Twitter Inc. shares rose 3.7% to close at $44.43, up 36% since July 11, with most analysts believing Musk has a long shot in court.
Musk countersued Twitter last week, accusing the company of deception in connection with his failed $44 billion acquisition. He claimed that Twitter withheld critical information and misled his team about its user base size.
Twitter is accused of fraud, breach of contract, and violation of a securities law in Texas, where Musk resides.
Musk made an offer to buy Twitter earlier this year but then tried to back out of the deal, claiming the social platform was infested with more “spam bots” and fake accounts than Twitter had disclosed.
Musk stated in the spring that he had no plans to sell a significant portion of his Tesla stake after securing financing to acquire Twitter, but Dan Ives, an industry analyst with Wedbush, stated on Wednesday that “the situation has dramatically changed.”
Wedbush raised its target price for Twitter shares, writing to clients, “With the chances of a Twitter deal now more likely in our opinion and the Street seeing through Musk’s poker move.”
“We can also see Musk attempting to defuse this explosive situation before the Twitter deal goes to court in October,” Ives wrote. “At the very least, we see Twitter receiving a massive settlement from Musk in the $5 billion to $10 billion range, which is already being factored into the stock.”
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