The CEO of Tesla, Elon Musk, has recently sold a total of 7.92 million shares of said company, which has allowed him to amass a total of $6.9 billion. This movement has not occurred by chance, and it has not been a whim of the executive, it has an explanation and as you may have guessed it is related to all the controversy that has occurred around the failed purchase of Twitter.
It seems that Elon Musk does not have much faith that he can dodge the obligation to buy Twitter, and that is why he has decided to sell shares now that he has plenty of room to get a good price. It is very easy to explain, imagine for a moment that in the end loses the trial and is forced to buy Twitter for 44,000 million dollars.
In that scenario, if any of the financial support that Elon Musk has to complete the operation is withdrawn, this would have to resort to an emergency sale of Tesla shares, and this could end up being harmful. With that sale of 7.92 million shares that Elon Musk has just carried out, he covers his back in order to face the worst possible scenario with guarantees, and without problems.
All in all, it is curious because in April the CEO of Tesla had already sold shares worth 8.4 billion dollars, and clearly stated that this money would be used to finance the purchase of Twitter. The executive also confirmed that he did not plan to sell more shares, something that, as we can see, he has not fulfilled.
In any case, Elon Musk’s words make sense. We know that the businessman had managed to secure financial support of 7,000 million dollars for the purchase of Twitter, and that this money came from sources such as Larry Ellison, Binance, the Qatar state investment fund and Morgan Stanley, among others, so the numbers fit.
We’ll see what happens, but Musk remains reluctant to accept the purchase of the well-known social network until Twitter details how they differentiate real users from bots. If the executive lost the trial would be forced to buy Twitter at a value of $55.20 per share, a figure much higher than what they currently have, since at the time of writing this article they had fallen to 42.83 dollars. It goes without saying that this would be a stick for Musk, and for those who backed him, unless they decide to withdraw. Twitter is not going through its best moment either.