According to his own statements, the Tesla boss wants to prepare for the fact that Twitter may force a recently bankrupted takeover deal. This is the biggest sale of Musk shares so far – a buyout is not out of the question.
Tesla boss Elon Musk has sold billions worth of shares in the American electric car manufacturer and wants to arm himself for a possible failure in a legal dispute over Twitter takeover.
According to reports by the US Securities and Exchange Commission (SEC), the star has sold securities worth USD 6.9 billion (approximately EUR 6.8 billion). This is his largest share sale in the company in history.
“In an (hopefully unlikely) situation where Twitter will force a deal to close and some equity partners divest, it’s important to avoid a sharp sell-off of Tesla shares,” the billionaire wrote on Twitter.
Musk accuses Twitter of false information
Musk is in a legal battle with the short message service as he wants to cancel a $ 44 billion service acquisition. Musk justified his withdrawal by saying that Twitter misrepresented the number of fake accounts on the platform. The website also breached the contract by not providing sufficient access to check numbers.
Earlier, he agreed with the company on a price of $ 54.20 per share on Twitter and invited various partners to work with the company to help finance the transaction. A court hearing in Delaware is scheduled for mid-October.
Meanwhile, Musk apparently wants to buy back Tesla stock if the Twitter takeover fails. When asked by Twitter followers if he would stop selling and buying back Tesla stock, he succinctly replied, “Yes.” (dpa)