In his latest move, Musk has sold another $6.9 billion of Tesla shares.
Since January this year, Musk had been buying Twitter stock almost on a daily basis. When his stake reached a little over nine percent, Musk announced his intention to buy out the social media company and take it private to "unlock its true potential."
Musk, who was keen on making sweeping changes at Twitter, had put together a team of 19 partners that included venture capitalists as well as cryptocurrency firm, Binance, which was ready to fund the purchase for equity. However, Musk later put the deal on hold, citing misleading numbers on how Twitter arrived at its bot/ spam account numbers. Many viewed this as Musk's attempt to eke out a discount on the offer that he made just a few months ago.
With neither Twitter nor Musk budging from their stance, the Tesla CEO declared that he was walking away from the deal whileThe court battle will be played out in the month of October, where Musk may be forced to complete the purchase at his offered price. However, Musk feels that some of his equity partners may not come through, although he did not specify which ones.
Tesla stock that has spiraled downward after Musk announced his decision to purchase Twitter has now bounced back up after Musk backed off from the deal. The financial plan Musk had announced while expressing his interest in the social media company involved the sale of his Tesla stake and a margin loan he would take with the stock he owned.
With uncertainities looming over which way the court decision will go, Musk needs to be prepared with the funds if it comes to that. However, there is also another reason why Musk may need the funds. There is a sliver of a chance that Musk and Twitter can agree on spam/ bit account numbers and the deal progressing on the original terms, as Musk saidIn case it does not, Musk can simply buy back the Tesla shares at a later point or even use the funds to start his own social media company, X.
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