Pre-orders for the Galaxy Buds 2 Pro begin on August 10, and even though Elon Musk is attempting to back out of a deal to buy Twitter, the Tesla CEO is still stockpiling cash in case he is forced to buy the company.
Musk disclosed in SEC filings(Opens in a new window) on Tuesday that he sold 7.9 million Tesla shares for approximately $6.9 billion. The sales began on August 5 and continued on August 8 and 9.
Musk claims the stock sale is required if a Delaware court orders him to buy Twitter. “It is critical to avoid an emergency sale of Tesla stock in the (hopefully unlikely) event that Twitter forces this deal to close and some equity partners do not come through,” he tweeted.
Musk agreed to buy Twitter for $44 billion in April. The acquisition plan at the time called for Musk to provide $21 billion in equity financing, with the remaining $26 billion coming from bank loans. In May, Musk received an additional $7 billion(Opens in a new window) in funding from friends and supporters, including Oracle CEO Larry Ellison, to support his bid to buy Twitter.
Musk’s decision to sell $6.9 billion in Tesla stock still surprises some investors. He previously(Opens in a new window) sold $4 billion in Tesla shares in April while telling investors he had no plans to sell anymore.
Musk announced on Twitter that I did him selling after his most recent sale at $6.9 billion. However, if the Delaware court cancels his deal to buy the social media company, he intends to repurchase Tesla stock(Opens in a new window).
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I set the trial against Musk against Twitter to begin in October. The Tesla CEO claims that Twitter has been grossly under-counting the number of spam/fake accounts on its platform, allowing him to back out of the deal. Twitter, on the other hand, responded last month by suing Musk in an attempt to compel him to buy the company for $44 billion, citing the binding merger agreement he signed.