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#World’s Richest Man, Elon Musk Sells N2.86trn ($6.9bn) Tesla Shares As Battle For Twitter Continues

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World’s richest man, Elon Musk has sold N2.86trn ($6.9bn) worth of shares in Telsa in anticipation of the outcome of the Twitter lawsuit against him.

According to reports, the sales took place after the firm’s annual shareholder meeting last week, regulatory filings.

Musk in a tweet on Tuesday, August 9, 2022, said he needs the money in case he is forced to buy Twitter for $44bn.

“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,” he said.

Recall, on July 13, 2022, Twitter announced suing of the Tesla CEO Elon Musk in the Delaware Court of Chancery over termination of his $44billion (N18trillion) takeover.

Twitter has sued Musk to force him to complete the transaction, dismissing his claim that he was misled about the number of spam accounts on the social media platform as buyer’s remorse in the wake of a plunge in technology stocks.

Last month, a US judge ruled that Twitter’s lawsuit against Musk should go to trial in October.

Twitter hopes that the court will order Musk to complete the takeover at the agreed price of $54.20 per share.

Musk has countersued Twitter, although the details of that lawsuit have not been made public.

Also in July, Twitter said that between April and June, it had spent $33m on the proposed deal.

It also said its number of monthly daily users had risen to 237m – but it reported a net loss of $270m, which was worse than expected.

The world’s richest person, sold $8.5 billion worth of Tesla shares in April and had said at the time there were no further sales planned.

But since then, legal experts had suggested that if Musk is forced to complete the acquisition or settle the dispute with a stiff penalty, he was likely to sell more Tesla shares.

Musk sold about 7.92 million shares between Aug.5 and Aug.9, according to multiple filings. He now owns 155.04 million Tesla shares or just under 15% of the automaker according to Reuters calculations.

The latest sales bring total Tesla stock sales by Musk to about $32 billion in less than one year.

Tesla shares have risen nearly 15% since the automaker reported better-than-expected earnings on July 20, also helped by the Biden administration’s climate bill that, if passed, would lift the cap on tax credits for electric vehicles.

 

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