Tesla CEO and world’s richest man Elon Musk has sold $6.9bn of shares to raise equity in case he loses an upcoming court case over purchasing Twitter.
Musk made the move this past week and provided an update on it on Twitter late Tuesday, August 10th 2022.
“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk said on Twitter of the move to sell the shares.
The sale comes after the South African-born Canadian billionaire had promised no more sale of the shares of the car manufacturing company he founded.
He made the promise in an earlier attempt to raise cash for the Twitter deal, but stopped after serious resistance from other Tesla stockholders.
He’s been forced back into the move as a lawsuit looms over him pulling out of a deal to buy Twitter.
In April, Musk finalised a deal with Twitter to buy the company for $44bn.
However, he later tried pulling out of the deal when Twitter’s share price drastically fell, making his offer far outweigh the company’s market value.
Musk tried to torpedo the deal, claiming Twitter are facing a BOT problem, but the company refused to let him back down and sued him.
The case would be heard in Delaware in October, and in the event Musk has to buy the company, he doesn’t want to be forced into an emergency sale of Tesla stock.
The billionaire has promised to buy back the stock if he wins the case and isn’t forced to shell out $44bn.