Elon Musk, the CEO of Tesla and SpaceX, has reportedly sold $8.4 billion of Tesla shares in a bid to buy Twitter. The number of shares was approximately 4.4 million, and the price per share is estimated to be about $840–$1000. Also, Musk has set up financing of about $46.5 billion for his Twitter takeover, which consists of taking $21 billion in cash, the debt facilities account for $13 billion, and another $12.5 billion was acquired for the margin loans.
Musk has some important plans as he becomes the CEO of Twitter. He has a goal of empowering the concept of “free speech” on Twitter, where anyone can talk freely about his or her own opinions without the fear of being censored. He also has a lot of ideas to modernize the features on Twitter, such as incorporating the idea of “end-to-end encryption of direct messages” for all users to protect their important messages from being hacked or scammed. According to Musk, “Twitter has become kind of the de facto town square,” he added. “It’s just incredibly essential that people have the reality and idea that they can talk freely within the confines of the law.”
Thus, due to that enormous sale, the shares of Tesla went down in the stock market by up to 12%. But later on, the next day, they saw an increment of about 2.5%. Musk tweeted that day, “There will be no additional TSLA sales after today.” As a result of the sale of Tesla shares, Musk now has an acquisition of 163 million shares of Tesla. However, some analysts expressed concerns that Musk might lose focus on the development plans for Tesla as he becomes the owner of Twitter. But there’s still a long way to go and that might be some early assumptions about Musk.
Furthermore, there is an interesting deal between Elon Musk and Twitter that says that Musk requires a specific amount of funds for the acquisition of Twitter. To that end, Musk is obliged to pay a billion-dollar termination fee in case he is unable to collect the funds for Twitter. On the flip side, if he comes out successful in securing the funds, then Twitter would be indebted to Musk for a $1 billion fee as a result of this deal.