According to a document posted on the US Securities and Exchange Commission website, Elon Musk sold $6.9 billion of his Tesla stock to raise the money should he be forced to move on. with its agreement to buy Twitter.
On August 9, through his Twitter account, the 51-year-old tycoon explained that if the agreement with the social network is not closed, he would buy Tesla shares again. Furthermore, he noted that there is a possibility of setting up their own social media platform if the deal falls through.
In the (hopefully unlikely) event that Twitter forces me to close this deal and some equity partners default, it is important to avoid a crash sale of Tesla stock.
It’s worth mentioning that the SpaceX founder still holds a 15 percent stake in the company and has accelerated sales in the last year, earning roughly $32 billion. However, the sale of these shares was made in the midst of a legal battle with Twitter over its purchase agreement for 44 billion dollars.
Recall that, initially, Elon promised to offer $54.20 for each share of the social network, but later accused her of fraud and canceled the acquisition agreement, alleging that the platform deceived him in key aspects of the company before specifying the purchase. Once the acquisition agreement was broken, Twitter sued him to force him to fulfill the purchase contract.
In response, Musk countersued the social network, demanding that he be released from the buy-sell agreement and that Twitter be ordered to pay damages. The legal battle between Elon Musk and Twitter will last five days and will begin on October 17, before a specialized commercial law court in the state of Delaware.