Twitter’s loss dwarfed by Musk’s profit on Tesla stock sale

Twitter’s loss dwarfed by Musk’s profit on Tesla stock sale

  • Elon Musk’s attempt to abandon his purchase of Twitter Inc.
  • Musk tore up his April 25 deal to buy the social media platform.
  • Elon Musk sold 9.6 million Tesla shares at an average price of around $885 per share.
  • Analysts say he is in a better cash position.

Elon Musk’s effort to abandon his acquisition of Twitter Inc (TWTR.N) could leave the world’s wealthiest individual in a more grounded monetary situation than before he discovered the $44 billion arrangement. dollars, with billions of dollars in real money from the sale of Tesla stock currently sitting in the bank.

After Musk destroyed his April 25 deal to buy the virtual entertainment scene on Friday, with Twitter promising to push him to grow, the various parties face a long court fight that could still cost Musk billions of dollars. , according to legal experts. .

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Regardless of the outcome, the Tesla CEO appears, until further notice, to be perched on an estimated $8.5 billion in real money raised selling parts of the automaker in late April to fund getting Twitter. Recently, in April, Musk sold 9.6 million Tesla shares at a typical cost of around $885 per share.

“He is most likely in a better financial position now than he was a year ago because he sold so many Tesla shares, especially at a genuinely excessive cost,” said Guidehouse Insights expert Sam Abuelsamid.

“Nevertheless, depending on the final outcome of the case on this matter, he could find himself in a much more regrettable situation.

As Musk sold his shares, Tesla backers pointed out that buying Twitter could turn into a hiatus for Musk as Tesla faces growing strains on the economy and mounting contests from its rivals.

However, as CEO stock trades routinely make backers worried, the Twitter market has given Musk a sensible clarification to cut his monstrous stake in Tesla.

In December, Musk discussed the approaching choice expirations and expense installments for the offering of more than $16 billion worth of Tesla stock.

Since the sale of Tesla in April, the stock has fallen 19%, with it and other development stocks pounded by backers stressed by excessive expansion and an expected slowdown. In case Musk hadn’t sold those Tesla shares, they were now worth nearly $1.6 billion less.

It’s unclear how much personal valuation Musk could pay on his Tesla stock offering.

Musk receives no compensation from Tesla, instead securing billions of dollars in investment opportunities after hitting a few stocks and focusing on execution lately. He actually claims around 16% of Tesla, worth around $115 billion.

In the event that Musk loses his court fight against Twitter and is forced to complete the purchase or suffer a solid consequence, he may eventually need to sell more Tesla shares, scaring off backers and hurting value. of his remaining stake in Tesla, Abuelsamid said.

Musk hasn’t done as well with the Twitter shares he bought before he said he would buy the organization. Musk bought 73 million shares of Twitter for $2.64 billion from January to April, at a typical cost of around $36 per share.

Twitter stock fell 9.5% to $33.50 on Monday. Costing that much, the value of his Twitter stake dropped by around $200 million.

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