Afraid of being forced to buy Twitter, Elon Musk sells nearly $7 billion worth of Tesla stock

The conflict is bogged down between Twitter and Elon Musk. As a reminder: the billionaire announced on July 9 that he finally refused to complete his takeover of the social network for 44 billion dollars, on which he had committed 3 months earlier. Since then, a legal battle has begun between the two parties, Twitter having filed a complaint first to force the businessman to respect his commitment. The latter did the same on July 29 before the same court specializing in business law, the Delaware Court of Chancery.

The trial will be held on October 17, and Elon Musk is worried about Tesla. On his Twitter account, he explained that he wished avoid an emergency sale of Tesla shares », if it is forced to buy Twitter, with the risk that some of its financial partners do not follow it to the end. As a result, the businessman sold almost $7 billion worth of shares in the Tesla automotive group, according to a document filed with the SEC, the American stock market watchdog, and published on Tuesday’s website. the latter. According to the document, this corresponds to approximately 7.9 million shares Tesla sold between August 5 and 9. In April, he had already sold some $8.5 billion worth of shares in his automobile group to prepare for the acquisition of the social network.

Elon Musk vs Twitter: why the date of the upcoming trial is the sinews of war

If the lawsuit ends in his favor, Elon Musk will buy Tesla shares again, he said, quoted by the wall street journal. He also mentioned the idea of ​​creating his own social network. A project to which he had indicated that he was “seriously thinking” even before the takeover of Twitter.

Dispute over the number of fake accounts

Elon Musk on Saturday challenged the boss of Twitter to publicly debate and prove the share of fake accounts on the social network. This is indeed the point of disagreement between the two parties, the billionaire accusing the social network of having ” fraud “, by voluntarily increasing the number of monetizable accounts on its platform. And it is this argument that the boss of Tesla has put forward to withdraw his purchase offer, launching a legal battle. For its part, Twitter replies that the businessman rushed the negotiations and that the agreement never mentioned the fake accounts. The lawyers of the social network denounce a “Attempt to escape a contract that Musk no longer finds attractive since the stock market fell”.

Twitter lawsuit against Musk: bots at the heart of the legal battle

(With AFP)