The Real Reason Elon Musk Just Sold $6.9 Billion In Tesla Stock

In a shocking flip of events, the BBC reviews that Elon Musk has bought greater Tesla stocks, really well worth approximately $6.nine billion — this, after saying only a few months in the past that he didn`t plan on dumping any greater stock. In April, Musk offloaded Tesla stocks worth roughly $8.four billion (through CNBC), sparking issues that his pass could force Tesla down withinside the marketplace and that his Twitter acquisition could show to be a distraction from his responsibilities on the EV maker.

The sale of every other $6.nine billion in Tesla stocks comes weeks beforehand of the courtroom docket showdown with Twitter following the social media company's lawsuit towards the billionaire. Twitter desires to pressure Musk's palms at going via with his $forty four billion acquisition commitment, even as Musk is attempting to exit the deal, mentioning alleged deceptive claims made via way of means of Twitter. At stake is a $1 billion payday as a severance on the way to be paid via way of means of the birthday birthday celebration that reneges at the authentic buyout contract.

Twitter is attempting its toughest to make Musk pay up, even as Musk maintains to say that Twitter is mendacity approximately the real significance of its bot debts problem. A few days in the past, Musk even challenged Twitter CEO Parag Agrawal to discuss him over the issue — on Twitter — and hinted that the deal will move ahead simplest whilst he receives his palms at the data he seeks. Some experts, however, are of the opinion that Musk's probabilities do not appearance very shiny and he would possibly come to be having to fork out the cash.

Preparing for the worst

Explaining the motive at the back of promoting every other batch of Tesla stocks worth $6.nine billion in total, Musk showed that he's doing in order a contingency plan. "In the (with any luck unlikely) occasion that Twitter forces this deal to close *and* a few fairness companions do not come via, it's miles essential to keep away from an emergency sale of Tesla stock," Musk tweeted. His plans sound rational, and the general public disclosure makes a variety of experience as a ways as keeping investor self assurance goes.

To recall, Musk formerly showed plans of securing $7.1 billion in fairness backing from big-call traders including Sequoia Capital, Binance, and Larry Ellison. Experts keenly staring at the Musk-Twitter trends be aware that the present day Tesla stocks sale is an indication that the deal will probably move via. That method Musk will need to cough up his percentage of the billions from the initial $forty four billion deal valuation to pocket Twitter. If the deal would not materialize, Musk has hinted that he'll flip "X.com" into his personal social media platform, some thing he has been teasing for some time now.