Determined not to go through with his takeover of Twitter, Elon Musk knows that justice could compel him. To avoid a disaster scenario, which would lead to the collapse of Tesla shares, the billionaire has just recovered 6.9 billion dollars.
The Twitter case v. Musk never ends. While waiting for the start of the trial, which will take place on October 17, 2022, the lawyers of the two parties clash on many subjects, without ever going into the substance. Elon Musk remains convinced that Twitter lied to him and he doesn’t want to hear about the company anymore, while the social network continues to claim that the billionaire has wronged him and must honor his contract. It’s hard to say how this whole story will end, even if the judge’s first decisions put Twitter in a position of strength. Forced sale is possible, but both parties can find a financial agreement in the meantime. In any case, it could cost Elon Musk dearly.
Exactly, the billionaire seems to be preparing for a dark scenario. After saying in April that he would no longer sell Tesla stock, he has once again changed his mind. Between August 5 and August 9, Elon Musk sold 7,924,107 shares of Tesla, which is about $6.9 billion. Enough to have enough money in your pocket to prepare to sign a big check.
Elon Musk prepares to buy Twitter
What is good with Elon Musk is that he sometimes knows how to be transparent. Questioned by the author of the tweet at the origin of the revelation on his share sales, the billionaire tells the truth about his intentions, the 10 August: “In the (hopefully unlikely) event that Twitter succeeds in forcing this deal through *and* certain financial partners don’t come forward, it’s important to avoid a fire sale of Tesla stock. »
In other words, Elon Musk does not want to have to sell tens of millions of Tesla shares on October 21, the date the trial closes, in the event that justice condemns him to buy Twitter. The stock could crash, causing him to lose a lot of money all at once. By selling now, the billionaire is ensuring he has a big enough portfolio to not rely on stocks, since stocks are still priced high (even though they’ve lost 25% since Elon Musk took an interest in Twitter, but it is also due to the economic context).
In his head, it seems that the Twitter project is not completely forgotten. Elon Musk hopes to get out of it, but he still imagines himself boss of the company in a few months.