The Tesla CEO is preparing for the "hopefully unlikely" event that he actually has to buy Twitter. Elon Musk has sold millions of shares in Tesla over the past few days. He confirmed this on Twitter after an investor noticed the transactions. The Tesla CEO is thus preparing for the event that he actually has to implement his takeover of Twitter.
Musk announced on Twitter in April that he did not want to sell any more shares in his company. At the time, he sold Tesla shares for a total of $8.5 billion. However, between August 5 and August 9, 2022, Musk sold around 8 million more shares. This is the result of several public filings with the US Securities and Exchange Commission.
"In the (hopefully unlikely) event that Twitter forces the deal to close and some equity partners fail, it's important to avoid a fire sale of Tesla stock," Musk said on Twitter. The social network is trying to enforce the agreed takeover in court after Musk unilaterally withdrew from the deal. The start of the procedure is scheduled for October 17, 2022.
It is speculated that Musk has been wanting to get out of the deal for some time. A month before he officially announced his exit, he was raising doubts about the accuracy of Twitter's data on fake accounts and bots on the platform.
Musk also wrote, on Twitter, that he would buy back Tesla stock if he wasn't legally compelled to honor his takeover deal with Twitter.
Treasury manager David Einhorn said the Delaware court "created a high degree of predictability in this area. " So he assumes that Musk will really have to buy Twitter in the end.