Since November, the billionaire has sold $32 billion worth of stock.
Musk promises to buy back shares if the deal falls through.
Elon Musk sold $6.9 billion worth of Tesla Inc. stock to raise money before a trial that would make the entrepreneur follow through on his acquisition of Twitter Inc.
According to regulatory documents, the CEO of Tesla sold 7.92 million shares over the previous three trading days. Musk, who still owns about 15% of the electric vehicle manufacturer, declared in a tweet that he has stopped selling and would purchase Tesla stock if the Twitter transaction falls through.
Musk stated, "It is crucial to avoid an emergency sale of Tesla stock in the (hopefully improbable) event that Twitter pushes this deal to close *and* some equity partners don't come through.
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Tesla rose 3% to $875.51 at 9:50 a.m. Wednesday in New York, Twitter climbed 3.2% to $44.19.
Since November, Musk has sold nearly $32 billion worth of Tesla stock. The richest man in the world claimed less than four months ago that he had no more stock transactions planned. Since then, he has tried to cancel his $44 billion purchase of Twitter. The trial for the lawsuit filed by the social media business to compel Musk to complete the transaction is set for October.
According to Charu Chanana, a strategist at Saxo Capital Markets Pte in Singapore, Musk is "cashing up for Twitter" and may be looking to profit from the roughly 35% rise in Tesla stock since late May. "The bear market rally has begun to sputter, and further downgrading of Fed views could spell further trouble for equities in the near future, especially in tech."
An exhilarating ride
Tesla shares are continuing declining this year despite having recovered from recent lows.
Investors had doubts that Musk, 51, was done selling Tesla stock; 68% of 1,562 respondents to an MLIV Pulse survey last month indicated that Musk, regardless of the outcome of the Twitter acquisition, was likely to sell more stock.
The equity portion of the deal climbed to $33.5 billion when Musk abandoned plans to use a Tesla margin loan to help pay for a portion of the Twitter acquisition. According to prior reports, he has raised $7.1 billion in equity commitments from backers like Sequoia Capital, Binance, and billionaire Larry Ellison.
Since Musk made his unexpected overtures in April, the market performance of Tesla has been correlated with the Twitter offer. The initial decline in the stock of the automaker was caused by worries that the chase would divert him and by the danger of the margin loan he planned to take out against his Tesla holdings. When Musk gave up on the financing strategy and in the weeks that followed, when he declared he wanted to cancel the deal, the price rose.
Musk tweeted over the weekend that "the deal should proceed on original terms" if Twitter disclosed how it samples accounts to count the amount of bots using its network.
