Tesla (TSLA) | Twitter (TWTR) Saga To Go To Courts
Elon Musk on Friday announced he was backing out of his $44 billion Twitter acquisition bid, blaming the social media platform’s alleged lack of transparency regarding bots on the site.
As both sides prepare for a lengthy court battle, some Twitter influencers are floating an alternate theory for the change of heart: The bots were never the problem, merely a vehicle through which to covertly sell Tesla options that were about to expire.
“Entire thing was a clever ruse to SELL + LIQUIDATE $8.5 BILLION of TESLA STOCK (w/plausible excuse for doing it),” Josh Wolfe, co-founder of Lux Capital, tweeted Friday after the announcement. The tweet included math that suggested Musk would walk away with more than $7 billion in liquidated stock—even after paying the $1 billion breakup fee.
Henry Blodget, founder and CEO of Insider, retweeted Wolfe, adding that Musk’s 10-year Tesla options were about to expire, “so he had to sell them.”
“The Twitter bid did allow him to do that without his facing questions about why he was selling. And he sold at an excellent price!” Blodget said via tweet.
In a letter addressed to Twitter’s top lawyer, Vijaya Gadde, Musk’s legal team accused Twitter of making “false and misleading representations upon which Mr. Musk relief when entering into the Merger Agreement.”
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
$Tesla Motors(TSLA)$
Tesla stock is rising after reporting impressive second-quarter earnings, particularly considering the difficult Q2 operating environment.
Tesla (ticker: TSLA) reported adjusted second-quarter earnings per share of $2.27 from $16.9 billion in sales.
Analysts were projecting second-quarter earnings per share of about $1.83 from $16.9 billion in sales. It’s a another bottom line beat for the company, Tesla’s six consecutive earnings beat, according to Bloomberg.
But Q2 earnings and sales were down compared with the first quarter of 2021. In Q1, Tesla reported EPS of $3.22 from sales of about $18.8 billion.
The sequential decline in earnings was expected because of China’s lockdowns to fight Covid-19, which constrained production and left Tesla with fewer electric vehicles to sell. Tesla delivered about 255,000 EVs in the second quarter, down from about 310,000 in the first quarter.
$Tesla Motors(TSLA)$
Tesla has reported second-quarter earnings that were better than expected.
The decision to sell its Bitcoin (BTC-USD) holdings may have saved it.
But growing competition threatens to hinder the future progress of TSLA stock.
fight it out in Kiev!