Elon Musk sells nearly $7 billion worth of Tesla stock to finance his deal with Twitter.

Elon Musk, the chief executive of electric vehicle maker Tesla, sold about $7 billion worth of company stock, a move he said on Twitter was an effort to raise cash should he be forced to complete his deal. $44 billion to acquire the social media company.

The sale of 7.92 million Tesla shares was made effective August 5, it revealed in securities filings on Tuesday, a reversal of its earlier statements that it would not sell additional shares to fund the Twitter deal.

Musk signed the deal in April to acquire the social media company only to announce months later his intention to pull out, citing concerns about its false user accounting. His hesitation coincided with a deep drop in shares of technology companies, including Tesla, the main source of his wealth.

Twitter sued Musk to force him to close the deal through a contract provision known as “specific performance.” A Delaware Court of Chancery judge will decide in October whether he should go ahead with the acquisition.

In a Tuesday tweet, Musk said he sold the shares in “the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it’s important to avoid a fire sale of the shares.” Tesla shares. Musk is the world’s richest man, but much of his wealth is tied to shares in the electric vehicle company. He also said on Tuesday that he would buy more tesla shares if your deal to buy Twitter didn’t close.

In April, Musk sold about $8.5 billion worth of Tesla stock to help finance the deal, before he tweeted. no more sales expected.

Twitter shares rose 2.8 percent in early trading, though still well below the $54.20 a share Musk offered for the company. Tesla shares rose less than 1 percent.

In addition to some $13 billion in debt financing, Musk said in May that he would pay for the Twitter acquisition with some $33.5 billion in cash, through a combination of his own funds, outside investors and a partnership with other Twitter shareholders. Twitter. He had already signed a list of Silicon Valley heavyweights, including venture capital firm Andreessen Horowitz and tech mogul Larry Ellison, to commit about $7.1 billion to the deal. Other sponsors include cryptocurrency companies, family offices, sovereign wealth funds, real estate companies, and mutual fund companies.

Many of those backing Musk’s offer have been subpoenaed by Twitter in an increasingly bitter court proceeding.

Musk has called into question the way Twitter accounts for its number of fake users. Twitter has defended the prosecution of it, which it says includes private and sensitive information.

For the past few weeks, both Twitter and Musk have argued over the details of the deal. Musk released his counterclaims last week against Twitter, accusing the social media company of “fraud” and forcing it into a sale. Twitter president Bret Taylor called his claims “really inaccurate, legally insufficient and commercially irrelevant.”

At the same time, Musk appeared to take a more open tone toward the possibility of going ahead with the deal. At Tesla’s investor day last week, he talked about the changes he would make to Twitter if he were to run it.

On Saturday, he tweeted: “If Twitter just provides their method of sampling 100 accounts and how they are confirmed to be real, the deal should continue on original terms.”

Still, Musk seems intent on keeping several doors open. In response to a question on Twitter about whether he would create his own social platform if the deal doesn’t close, he replied “X.com.” Musk, who has an affinity for the letter “X,” has spoken about wanting to create a rival service. Twitter has cited that possibility as a reason to resist Musk’s demands for sensitive information about how it accounts for fake users.

Many legal analysts have said that Twitter’s argument is stronger than Musk’s, but have questioned whether a judge would be willing to order him to close the deal, at the risk of defaulting, given Musk’s habit of scoffing. legal limits.

His sale of Tesla stock may mitigate those concerns, said Ann M. Lipton, a professor of corporate governance at Tulane Law School.

“The sales make it clear that he intends to comply with court orders,” he said.

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