By TechThop Team
Posted on: 11 Aug, 2022
As Elon Musk continues to try and back out of the Twitter agreement, he sold almost $7 billion in Tesla stocks on Tuesday. The move was made to 'avoid an emergency Tesla stock sale in the future.'
The sale of nearly eight million shares of Tesla shares, which are valued at nearly $6.9 billion, was revealed in new filings this week, which reveal Musk has sold nearly eight million shares.
As Musk tweeted in April, there weren't going to be any more Tesla stock sales, after he sold about $8.4 billion worth of shares to fund his initial deal to buy Twitter.
Musk confirmed online that he was done selling for the week and noted that he only sold the amount as a contingency plan, in case he's forced to follow through on the agreement he struck with the company in April.
The Tesla CEO is currently facing lawsuits from Twitter after the social media giant pulled out of its deal with Musk earlier this year, in which Musk had planned to purchase the social media company for $44 billion.
Tesla founder Elon Musk withdrew from the Twitter deal last month claiming that Twitter had failed to disclose how many spam users and fake accounts it hosted.
A judge in Delaware has scheduled a trial date for October, which Musk unsuccessfully tried to delay, although it made sense to him.
As Musk noted earlier this month, he would still be happy to sell Twitter to a bidder if Twitter fulfilled more of his data requirements, despite his concerns about the sale.
“Twitter should provide an explanation of how they sample 100 accounts and how they confirm that the accounts are true, and the deal can proceed on its original terms,” Musk wrote in a blog post.
The SEC may take action against them if, however, it turns out that the information that they have provided to the SEC is materially false. In that case, no action should be taken against them.
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