Twitter 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.
- Indian Court Declares XRP as Property in WazirX Hack Case
- Ethereum Supercycle Strengthens as SharpLink Gaming Withdraws $78.3M in ETH
- Trump Tariffs: Secretary Bessent Declares ‘Fantastic’ Trump–Xi Talks, Bitcoin Breaks $113,000
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?