The Real Reason Elon Musk Just Sold $6.9 Billion In Tesla Stock

Explaining the reason behind selling another batch of Tesla shares valued at $6.9 billion in total, Musk confirmed that he is doing so as a contingency plan. “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,” Musk tweeted. His plans sound rational, and the public disclosure makes a lot of sense as far as maintaining investor confidence goes.

To recall, Musk previously confirmed plans of securing $7.1 billion in equity backing from big-name investors such as Sequoia Capital, Binance, and Larry Ellison. Experts keenly observing the Musk-Twitter developments note that the latest Tesla shares sale is a sign that the deal will likely go through. That means Musk will have to cough up his share of the billions from the initial $44 billion deal valuation to pocket Twitter. If the deal doesn’t materialize, Musk has hinted that he will turn “X.com” into his own social media platform, something he has been teasing for a while now.