Tesla shares climbed 2% in pre-market trading, after filings showed CEO Elon Musk sold nearly $7 billion of stock in recent days.
Mr. Musk said he was wanted to avoid an emergency sale of Tesla stock if his acquisition of Twitter is forced to close.
When asked by a Twitter user if he would buy Tesla stock if the Twitter deal doesn’t close, Mr. Musk tweeted “Yes.”
*Tweet on Musk and Tesla’s stock sale
Elon Musk just sold over $6.9 Billion of Tesla, ahead of Twitter Trial!
— The_Journalbiz (@the_journalbiz) August 10, 2022
“The reason they’re higher is likely because he said he would look to buy them back in the event that those risks don’t transpire,” said Michael Hewson, a markets analyst at brokerage CMC Markets.
“But it will be interesting to see if that rally is sustained once U.S. markets open. also if we get a strong CPI number, all bets are off, as this sector will be among those hit the hardest,” Mr. Hewson added
Elon Musk Sells 7.92 Million Tesla Shares Valued at Nearly $7 Billion Amid Twitter Uncertainty
The billionaire suggested stock sales were aimed at avoiding a fire sale if forced to buy the social-media company
Elon Musk, whose net worth totals around $250 billion, according to the Bloomberg Billionaires Index, is compensated in stock awards and doesn’t accept a salary from Tesla.
Elon Musk sold nearly $7 billion of Tesla Inc. stock in recent days, regulatory disclosures show, amid uncertainty over the fate of his $44 billion deal to buy Twitter Inc.
Mr. Musk, Tesla’s chief executive and largest shareholder, sold around 7.9 million shares between Friday and Tuesday, the disclosures show, leaving him with a 15% stake in the company.
The Tesla boss has been on a selling spree over the past year, during which he has cashed out roughly $32 billion worth of shares in the electric-vehicle maker. And recently, he tweeted: “No further TSLA sales planned after today.”
Mr. Musk has since tried to walk away from buying Twitter, which is suing him to enforce the takeover. The case is headed to court in October.