Musk sold his shares in the company in order to have cash in case he has to go ahead with his plan to buy the micro-messaging service.
After the sales were disclosed in a series of regulatory filings, Musk said it was important to avoid an emergency sale of the company's stock.
When asked by followers if he was done selling and would buy stock again, Musk said yes.
Yes.
In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock.
— Elon Musk (@elonmusk) August 10, 2022
The chief executive officer sold about 7.92 million shares on August 5th. After disposing of $8.5 billion of stock in the wake of his initial offer to buy Twitter, the world's richest person said he had no further plans to sell his shares in the electric car company.
Musk said last month that he was walking away from the deal to buy the social network where he has more than 100 million followers and take it private. A trial in the Delaware Chancery Court has been set for October, when the lawsuit against Musk will be heard.
Musk dropped plans to partially fund the purchase with a margin loan and increased the size of the equity component of the deal. He said he had secured $7.1 billion of equity commitments from investors.
I put the odds at 75% that he is buying the social networking site. Gene, a former technology analyst, is now a managing partner at a venture-capital firm. It is going to be a problem for the company. Delivery and gross margin are all that matter in the long run.
The deal should proceed on original terms if there is a method of sampling accounts to determine the number of bots and how they are confirmed to be real.
Good summary of the problem. If Twitter simply provides their method of sampling 100 accounts and how they’re confirmed to be real, the deal should proceed on original terms.
However, if it turns out that their SEC filings are materially false, then it should not.
— Elon Musk (@elonmusk) August 6, 2022
Over the last 10 months, Musk has sold $32 billion of stock in the company. The disposals began after Musk asked users of the platform if he should reduce his stake. The purpose of the sales wasn't clear.
The shares of the company have risen from recent lows, but are still down from this time last year.
With a $250.2 billion fortune, Musk is the world's richest person, but his wealth has fallen around $20 billion this year due to the decline in the stock price of his company.
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