Elon Musk sells $6.9 billion in Tesla shares in case he is forced to buy Twitter

Elon Musk sold $6.9 billion of its stock in Tesla Inc., the billionaire’s biggest purchase on record, said he needed cash in case he was forced to proceed. his canceled deal to buy Twitter Inc.

“In the event (hopefully not) that Twitter forcing this deal to close *and* some equity partners not to go through it, it is important to avoid an emergency sale of Tesla stock,” Musk tweeted late Tuesday after the sales were revealed in a series of regulatory filings.

When asked by followers if he had finished selling and would buy back Tesla stock if the $44 billion deal didn’t close, Musk replied, “Yes.”

Tesla’s CEO sold about 7.92 million shares on August 5, according to new filings. The sale comes just four months after the world’s richest man said he has no plans to sell more Tesla stock after selling $8.5 billion of shares following an initial offer to buy back Twitter.

Last month, Musk said that he end deal to buy the social network he has more than 102 million followers and keep it private, and claims that the company has made “false statements” about the number of spam bots on the site. service. Twitter has been there since to sue to force Musk to complete the deal and test at Delaware Chancery Court was set for October.

In May, Musk give up the plan to partially finance the purchase with a margin loan tied to his Tesla shares and increase the size of the equity component of the deal to $33.5 billion. Earlier, he announced that he had secured $7.1 billion in equity commitments from investors including billionaire Larry Ellison, Sequoia Capital, and Binance.

“I would put a 75% rate that he buys Twitter. I was shocked,” said Gene Munster, a former technology analyst who is now a managing partner at venture capital firm Loup Ventures. “This will be a breeze for Tesla in the near term. In the long run, all that matters is delivery and gross margin.”

Over the weekend, Musk tweeted that if Twitter provides an account sampling method to determine the number of bots and how they are confirmed to be real, “the deal will proceed on the original terms.”

Musk, 51, has now sold about $32 billion worth of Tesla stock in the past 10 months. The proposals began in November after Musk, an prolific Twitter user, polled users of the platform on whether he should trim his stake. The purpose of the latest sale wasn’t immediately clear.

Tesla shares are up about 35% from recent lows hit in May, though are still down about 20% this year.

With a fortune of $250.2 billion, Musk is the richest person in the world, according to the Bloomberg Billionaires Index, but his fortune has fallen by about $20 billion this year as Tesla shares tumble.

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