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Elon Musk's sale of another $7 billion in Tesla stock makes his Twitter takeover more likely, Wedbush says

Added 08-10-22 09:14:03am EST - “"The Street and legal experts across the board view Twitter as having a 'strong iron fist upper hand' heading into the Delaware court battle."” - Markets.businessinsider.com

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Posted By TheNewsCommenter: From Markets.businessinsider.com: “Elon Musk's sale of another $7 billion in Tesla stock makes his Twitter takeover more likely, Wedbush says”. Below is an excerpt from the article.

It's looking more likely that Elon Musk will be forced to close on his deal to buy Twitter after the world's richest person sold $7 billion worth of Tesla stock, according to a Wednesday note from Wedbush.

Musk himself said on Twitter that his sale of Tesla stock over the past few days was "to avoid an emergency sale of Tesla stock" in the event that he is forced to buy the social media platform and some of his equity financing falls through.

According to Wedbush analyst Dan Ives, Musk's Tesla stock sale is "writing on [the] wall [that a] deal could be in the cards," the note said. Ives raised his Twitter price target to $50 from $30, just shy of Musk's agreed upon buyout price of $54 per share, or about $44 billion.

"The Street and legal experts across the board view Twitter as having a 'strong iron fist upper hand' heading into the Delaware court battle this Fall after months of this fiasco and nightmare playing out since April," Ives said, adding that "Twitter's board is holding Musk's feet to the fire to finish the deal at the agreed upon price."

Musk has been attempting to back out of his agreed upon deal, which includes a signed contract that waived due diligence rights, arguing that there are more bots on Twitter's platform than originally disclosed. 

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