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Elon Musk sells $6.9 billion in Tesla stock in court to enforce Twitter deal

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Telon CEO Elon Musk has sold $6.9 billion in shares in the electric-vehicle maker, saying the funds could be used to fund a potential Twitter deal if it settles a legal battle with the social media company platform loses.

In the (hopefully unlikely) event that Twitter forces this deal *and* some equity partners don’t go through, it’s important to avoid a fire sale of Tesla stock,” he said in a tweet late Tuesday.

In early July, Musk tore up his April 25 agreement to buy Twitter for $44 billion. Twitter has sued Musk to force him to complete the deal, dismissing his claim that he was misled about the number of spam accounts on the social media platform because of the buyer’s remorse following a slump in tech stocks. The two sides are due in court on October 17.

“Street will read through this poker move that the odds of a Twitter deal are more likely now,” tweeted Dan Ives, analyst at Wedbush Securities.

In other comments on Twitter Tuesday, Musk said “yes” when asked if he was done selling Tesla stock, and also said he would buy Tesla stock again if the Twitter deal doesn’t go through .

Musk, the world’s richest person, sold $8.5 billion worth of Tesla stock in April and said at the time that no further sales were planned. But legal experts had since suggested that Musk would likely sell more Tesla stock if he was forced to complete the acquisition or settle the dispute with a hefty penalty.

Musk sold approximately 7.92 million shares between Aug. 5 and Aug. 9, according to multiple filings. He now owns 155.04 million Tesla shares, or just under 15 percent of the automaker, according to Reuters calculations.

The recent sales bring Musk’s total Tesla stock turnover to about $32 billion in less than a year.

Tesla shares are up nearly 15 percent since the automaker reported better-than-expected earnings on July 20, also helped by the Biden administration’s climate bill that, if passed, will cap tax credits for electric vehicles would cancel.

Musk also teased on Tuesday that he could launch his own social media platform. When asked by a Twitter user if he had thought of starting his own platform if the deal didn’t go through, he replied: “X.com”

https://www.independent.ie/business/technology/news/elon-musk-sells-69bn-of-tesla-shares-ahead-of-court-bid-to-force-through-twitter-deal-41902574.html Elon Musk sells $6.9 billion in Tesla stock in court to enforce Twitter deal

Fry Electronics Team

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