Elon Musk, one of the most prominent figures in the tech industry, once again made headlines for his high-priced legal strategy. Musk, Tesla’s CEO, disposed of 6.9 billion dollars worth of stock in the electric vehicle manufacturer.
A short time later, the auto industry and technology community couldn’t help but weigh in on his decision since he purchased Twitter, regarded as one of the most significant deals in the history of technology.
He also explained the rationale behind his selling decision, which prompted everyone else to do the same.
Elon Musk sold Tesla stock.
Elon Musk said he would use the proceeds from the sale of Tesla shares to finance a possible Twitter acquisition if he loses his legal battle with Twitter.
“It is critical to avoid an emergency sale of Tesla stock in the (hopefully rare) case Twitter forces this deal to close and some equity partners do not come through,” he said in a tweet late on Tuesday.
It all started with Twitter suing Musk to force the purchase through, dismissing Musk’s allegation that he was deceived about the number of spam accounts on the social media site as a buyer’s regret following a drop in technology stocks. Musk was forced to finish the sale.
It’s possible that Musk selling TSLA stock after saying there would be no more sales will encourage the Street to focus on the prospects of the Twitter deal happening and Musk preparing the cash part,” tweeted Wedbush Securities analyst Dan Ives. We are on the verge of a major conflict in Delaware. In the morning, “bulls/bears” will be talking about this stock sale a lot.
Asked later on Tuesday if he had completed the stock sell-off, he tweeted, “Yes,” and said, “If the Twitter acquisition does not close, I will buy Tesla stock again.”
If Musk is compelled to complete the acquisition or settle the case with a steep penalty, he may have to sell more Tesla shares, making him the world’s richest man. After selling $8.5 billion worth of Tesla stock in April, he declared that “at the time, there were no future sales planned.”
On the 17th of October, the two sides will go to trial. Because this trial has the potential to revolutionize everything, tech folks are more excited about it. When he bought Twitter for $44bn, he became the new Twitter king because he enjoyed making headlines.