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

Elon Musk invests $7 billion in Tesla stock as billionaires fix their finances ahead of a legal battle withTwitter. sold.

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

"It is important to avoid an emergency sale of Tesla shares if Twitter forces this deal to close and some of its equity partners fail to come to an agreement," Musk said late Tuesday. Tweeted.


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

— Elon Musk (@elonmusk) Aug 10, 2022

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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. rose 16% last month, and most believed that Musk had a very good chance of winning in court, but he also rose 3%.

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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 that Twitter has 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 his client.

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"Musk was forced into this powder keg before his Twitter deal formally went to court in October. I can see you trying to resolve the situation," Ives wrote. "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."

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