Contingency plan: Elon Musk sells Tesla shares worth $6.9 billion amid legal dispute with Twitter

Chief Executive Officer Elon Musk has sold Tesla’s shares worth $6.9 billion while citing his ongoing legal battle with social media giant Twitter.

Saying the funds could be used to finance a potential Twitter deal if he loses a legal battle with the social media platform, Musk defended his decision of selling shares in front of the company’s shareholders.

“In the (hopefully unlikely) event that Twitter forces this deal to close andsome equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” he tweeted.

Add WION as a Preferred Source

Twitter had sued Musk after the billionaire-backed out from his cash offer to acquire the company for $44 billion.

Musk had accused the San Francisco-based company of misleading his team about the true size of its user base and other problems which he said amounted to fraud and breach of contract.

Dismissing his claim as buyer’s remorse in the wake of a plunge in technology stocks, Twitter has sued Musk to force him to complete the transaction.

In April, Musk said he had no further sales planned after he sold $8.5 billion worth of Tesla shares.

According to court filings, Musk sold about 7.92 million shares between August 5 and August 9 and he now owns 155.04 million Tesla shares or just under 15 per cent of the automaker.

Since the automaker reported better-than-expected earnings on July 20, its shares have risen nearly 15 per cent.

If the Biden administration passes the climate bill, which will lift the cap on tax credits for electric vehicles, it will further boost Tesla shares.

Musk has also hinted at the possibility of starting his own social media platform like former US President Donald Trump did after he was blocked from accessing Twitter.

(With inputs from agencies)

Watch WION's live TV here: