Elon Musk Sells of Tesla Inventory in Preparation for Attainable Twitter Deal

Twitter Refutes Musk’s Latest Claims in Response to Countersuit Over Takeover Bid

Evidently Elon Musk isn’t solely assured that he’ll have the ability to pull out of his $44 billion Twitter takeover deal, with Musk reportedly selling almost $7 billion in Tesla stock in recent days in preparation for a transaction, if he’s ordered to pay up.

As reported by The Wall Street Journal:

Mr. Musk, Tesla’s chief govt and largest shareholder, offered round 7.9 million shares between Friday and Tuesday, the disclosures present, leaving him with a 15% stake within the firm. The Tesla boss has been on a promoting spree over the previous yr, throughout which he has cashed out roughly $32 billion price of shares within the electric-vehicle maker.”

Musk has since confirmed the sell-off, explaining that: 

The Musk/Twitter takeover is scheduled to be heard in the Delaware Court of Chancery in October, after Musk and his group sought to exit the deal based mostly on Twitter’s incapacity to persuade them that solely 5% of its lively customers are faux/bot accounts.

In response, Twitter has outlined its ‘airtight’ case in opposition to Musk’s numerous claims, with the courtroom scheduling an expedited trial based mostly on Twitter’s counter proof. Twitter’s counter submitting has additionally prompt that this factor is just not a authorized obstacle to the closing of the deal, below its unique phrases.

That implies that Musk’s takeover will come all the way down to Musk’s authorized group’s means to persuade the courtroom that Twitter’s strategy of counting bots and faux accounts constitutes a fabric altering of the unique phrases of the proposal, which seems prefer it could possibly be a tough path to take.

Which is why Musk is now taking measures to arrange for a probable loss, which is able to ultimately, in all probability, nonetheless see Musk develop into Tweeter in chief. Whether or not he desires to be or not.

After all, you might additionally argue that that is due diligence, and that Musk is just taking steps to make sure he’s lined, simply in case he loses the case. Some have additionally prompt that Musk’s whole Twitter takeover bid has been an elaborate entrance to be able to facilitate the sell off of Tesla stock options that have been set to run out quickly. These newest sell-offs may additionally play into that narrative, in enabling Musk to make much more cash, with out elevating market considerations as he reduces his Tesla stake.

That’s tremendous wealthy man math, and I received’t even faux to know the complexities of how that may work – but it surely does seem to be, at least, Musk is barely involved that he’s not going to win his upcoming trial, and that he’ll certainly be pressured to purchase Twitter at his unique agreed value.

Although Elon has additionally famous that he has a back-up plan, in case his Twitter deal falls by way of.

There’s nothing at X.com but, however one other Twitter consumer additionally shared this video clip wherein Musk defined his plans for the web site.

So Musk has a ‘fairly grand imaginative and prescient’ for what ‘X.com’, and ‘X Company’, could possibly be, with Twitter serving to to expedite that plan, no matter it’s.

So even when Elon does lose his upcoming courtroom case, he may nonetheless look to expand waves within the social media world – whereas it could additionally counsel that Twitter may develop into ‘X’ or one thing prefer it, in Elon’s broader plan.

Which sort of kills off this concept:

Elon Musk tweet

In any occasion, we’re now getting nearer to a decision a technique or one other, with the trial date looming, and Musk making ready for the subsequent stage, no matter which may be.

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