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.
The post Twitter Stock Rises As Elon Musk Sells Tesla Shares, Here’s Why appeared first on CoinGape.
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