Entertainment

Tesla shares sell for $7 billion ahead of a Twitter spat by Elon Musk

By FactsWow Team

Posted on: 11 Aug, 2022

Elon Musk is getting his finances in order ahead of his court battle with Twitter by selling nearly $7 billion worth of shares in Tesla. Tesla Inc.

CEO Elon Musk recently unloaded nearly 8 million shares of the company in a series of regulatory filings. In the unlikely circumstance that Twitter forces this deal to close and equity partners do not come through, Musk suggested avoiding an emergency sale of Tesla stock.

Tesla and Twitter are owned by Musk by far the most individuals. Tesla's stock closed Wednesday at $883.07, up 4% from the previous day.

Twitter Inc. shares closed at $44.43, up 3.7% since July 11, with most experts believing Musk's chances of success are long-shot.

As a result of his aborted $44 billion acquisition, Musk countersued Twitter last week, accusing the company of fraud.

According to him, Twitter misled his team about its user base size and held back critical information. Musk alleges Twitter violated Texas securities laws and committed fraud, breach of contract, and breach of contract.

Earlier this year, Musk offered to purchase Twitter, but later backed out, claiming the social media platform was infested with more spam bots and fake accounts than disclosed.

After Musk lined up financing to acquire Twitter in the spring, he said he did not plan to sell a large stake in Tesla, but Dan Ives, an industry analyst with Wedbush, said the situation has changed dramatically since then.

Based on Musk's poker move and the Street seeing through it, Wedbush raised its target price for shares of Twitter. Moreover, Ives wrote, Musk may try to solve this powder keg issue before the Twitter deal officially goes to court in October.

witter is expected to receive a large settlement from Musk in the range of $5 billion to $10 billion. This is already reflected in the stock price.

Thank You!

For more stories like this

Explore our website

TAP FOR MORE