Elon Musk sold nearly $7 billion worth of Tesla shares

This is a sale that does not go unnoticed. Tesla co-founder and CEO Elon Musk sold nearly $7 billion worth of shares in the automaker between Aug. 5 and Aug. 9, according to a filing with the Securities and Exchange Commission (SEC). the American stock market policeman, and published Tuesday, August 9 on the latter’s website.

The American multi-billionaire is currently engaged in a legal tussle over the takeover of the social network Twitter. In April, he had already sold $8.5 billion of shares in his automotive group to prepare for the acquisition of the social network, ensuring that there would be no further sales of Tesla securities.

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This new operation to sell 7.9 million shares represents a total value of approximately 6.9 billion dollars (6.7 billion euros). “In the event (which I hope is unlikely) that Twitter succeeds in forcing a finalization of the agreement, and that certain [de nos] financial partners would not come forward, it is important to avoid a fire sale of Tesla shares”wrote Elon Musk on Twitter.

Legal battle over Twitter takeover

While he had signed a $ 44 billion agreement in April to buy the social network, Elon Musk unilaterally broke it at the beginning of July. He then let it be known through his lawyers that he was putting an end to his plan to take over the platform, assuring that the social network had not respected the commitments made in the agreement concluded between them, by not not giving all the requested information on the number of fake accounts and spam.

These accusations are disputed by Twitter. In response, Elon Musk challenged the social media boss last Saturday to debate him publicly, asking him to “prove to the public that Twitter has less than 5% fake or unwanted daily users”.

As soon as the takeover agreement was broken, the Twitter platform sued the richest man on the planet, to force him to honor his promise. Elon Musk counterattacked before the same court, with a complaint in which he asks the court to release him from the agreement and to order Twitter to pay him damages.

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To settle the dispute, a five-day trial must open on October 17 before the Delaware Court of Chancery, a court specializing in business law. The odds that Mr. Musk will get away with paying only the $1 billion deal severance package, or that he will be declared in his rightful right, are considered very weak by the experts.

The shareholders of Twitter must, for their part, meet on September 13 to authorize or not this acquisition, which would represent for them a significant added value. Due to the general decline of the stock market in recent months, the decline in advertising revenue from social networks and public criticism of Elon Musk, the title of the social network had collapsed, to around 32 dollars on July 11.

Tesla posted strong second-quarter results in late July, posting $2.3 billion in profit for the period, almost twice as much as last year’s second quarter. But, for the first time since the start of 2021, its profits did not hit a new record high.

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Le Monde with AFP and Reuters

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