NewsletterTwitter Stock Rises As Elon Musk Sells Tesla Shares, Here’s Why
Twitter shares are up by close to 5% in the pre-market The reaction is likely due to the news that Elon Musk has sold 7.92 million shares of Tesla. The total value of the sold shares is close to $7 billion. The sale took place between August 5 and August 9 and was revealed by the SEC filings.
Tesla’s share price is down by about 3% in response to the news.
Elon Musk vs Twitter Heats Up
Elon Musk’s Tesla selloff is out of schedule. Musk had previously revealed that he has no future Tesla share sales planned. He also revealed that the selloff was to prepare for a scenario in which Twitter forces Elon Musk to close his Twitter deal.
Musk had proposed to buy Twitter for $44 billion. The deal was then accepted by Twitter’s board. However, Musk has since then informed that he is terminating the proposed arrangement. He accused Twitter of failing to reveal the number of bots and fake Twitter accounts on its platform.
Twitter sued Musk for forfeiting the deal and forcing the deal to close. Musk fears that if Twitter is successful, and some equity partners do not come through, an emergency Tesla selloff would be imminent. He reveals that he wants to avoid such a scenario.
Due to severe macroeconomic factors, Twitter’s share price has fallen down to $42.83. This is a significant decline from the $54 per share price that Musk proposed to buy Twitter. If Twitter is indeed successful in closing the deal, it would be excellent news for the company.
How This Can Affect Crypto
Crypto prices went on a major rally after news broke that Twitter had accepted Musk’s deal. Specifically, Dogecoin($DOGE), a token that Musk has wholeheartedly supported, showed an extremely bullish movement.
While this can have some effect on DOGE and crypto in general, it has also been seen that Elon Musk’s effect on crypto has been small and fleeting.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- December Recovery Ahead? Coinbase Outlines Why Crypto Market May Rebound
- Peter Brandt Hints at Further Downside for Bitcoin After Brief Rebound
- $1.3T BPCE To Roll Out Bitcoin, Ethereum and Solana Trading For Clients
- Why is the LUNC Price Up 70% Despite the Crypto Market’s Decline?
- CoinShares Fires Back at Arthur Hayes, Dismisses Fears Over Tether Solvency
- Ethereum Price Holds $3,000 as Bitmine Scoops Up $199M in ETH; What Next?
- Solana Price Outlook Strengthens as Spot ETFs See $15.68M in Fresh Inflows
- Dogecoin Price Gears Up for a $0.20 Breakout as Inverse H&S Takes Shape
- Bitcoin Price Forecast as BlackRock Sends $125M in BTC to Coinbase — Is a Crash Inevitable?
- XRP Price Prediction As Spot ETF Inflows Near $1 Billion: What’s Next?
- Solana Price Outlook: Reversal at Key Support Could Lead to $150 Target
