Elon Musk Sells Nearly $7 Billion in Tesla Shares Amid Twitter Deal Uncertainty
Tesla CEO Elon Musk sells 7.9 million shares worth $6.9 billion to prepare for a potential emergency Twitter acquisition. Musk states he will buy back the Tesla stock if the social media deal falls through.
Tesla CEO Elon Musk sells 7.9 million shares of his electric vehicle company, generating nearly $6.9 billion in cash. This marks the first time Musk sells Tesla stock since April, bringing his total stock sales over the last ten months to approximately $32 billion. Despite these massive transactions, Tesla shares trade relatively flat in after-hours trading.
Musk explains that these sales serve as a financial safety net in case he is legally forced to complete his $44 billion acquisition of Twitter. He expresses concern that some equity partners might not follow through on their commitments, which would force an emergency sale of Tesla stock. The executive also states on Twitter that he is done selling shares for now.
The Twitter deal currently remains in limbo as Musk previously attempts to terminate the agreement over disputes regarding bot calculations. However, Musk recently indicates a willingness to proceed with the original terms if Twitter provides adequate proof of its user verification methods. Furthermore, Musk promises to buy back his Tesla shares if the Twitter acquisition ultimately falls through.