This article was added by the user . TheWorldNews is not responsible for the content of the platform.

Elon Musk sells $7 billion in Tesla shares ahead of Twitter battle

Article Author:

The Associated Press

Associated Press

Michelle Chapman

FILE - Tesla CEO Elon Musk speaks before unveiling the Model Y at the company's design studio on March 14, 2019, in Hawthorne, Calif. Musk is selling about 8 million Tesla shares worth nearly $7 billion as the billionaire looks to get his finances in order ahead of his court battle with Twitter.
File - Tesla CEO Elon Musk 2019 before unveiling the Model Y at the company's design studio in Hawthorne, Calif., on March 14, 2019. twitter. Photo by Jae C. Hong /THE ASSOCIATED PRESS

It sold shares in Tesla as the billionaire sorted out its finances ahead of a legal battle with Twitter.

Musk disclosed in a series of regulatory filings that his company, he recently sold approximately eight million shares of Tesla Inc. did.

"If Twitter forces this deal to close and some of our equity partners fail to reach an agreement (which we believe is unlikely), it is important to avoid an emergency sale of Tesla shares. is," Musk tweeted late Tuesday.

Musk is by far the largest individual shareholder in both Tesla and Twitter.

Tesla shares rose nearly 2% before the opening bell on Wednesday. Shares of Twitter Inc. surged 16% last month, and most believed Musk had a very good chance of winning in court, but he also rose 3%.

Musk filed a countersuit against Twitter last week, accusing the company of fraud in canceling the $44 billion acquisition. He claimed Twitter hid important information and misled the team about the size of its user base.

Musk alleges Twitter committed fraud, breach of contract and violation of securities laws in Texas, where Musk resides.

Musk earlier this year said he offered to buy Twitter, but social his platform is infested with more "spambots" and fake accounts than Twitter revealed. tried to withdraw the acquisition.

Musk said this spring he had no plans to sell a large portion of his Tesla stake after preparing to raise money to buy Twitter, an industry analyst at Wedbush. "Things have changed dramatically," Dan Ives said Wednesday.

Wedbush raised its price target on Twitter shares. “In our opinion, Twitter deals are more likely and Street sees through this poker move by his Musk,” Ives wrote to a client.

"We also see Musk trying to resolve this powder keg situation before his Twitter deal officially goes to court in October," he writes Ives. . "At the very least, Twitter has a large settlement from Musk, in the $5 billion to $10 billion range, and we believe this is starting to factor into the stock."

} Posted Newsletter logo

Sign up to receive daily top stories from National Post, a division of Postmedia Network Inc.

By clicking the subscribe button, you agree to receive the above newsletter from Postmedia Network Inc. You can unsubscribe at any time by clicking the unsubscribe link at the bottom of the email. Post Media Networks Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300