Elon Musk is about to takeover Twitter without selling any more Tesla stock

SpaceX and Tesla CEO Elon Musk has seemingly secured funding for his Twitter deal without having to sell any more Tesla stock than he already has.

Elon Musk is about to takeover Twitter without selling any more Tesla stock
Published Oct 27, 2022 5:53 AM CDT   |   Updated Tue, Nov 15 2022 8:16 PM CST
1 minute & 54 seconds read time

The absolute rollercoaster of Elon Musk purchasing Twitter is finally coming to an end, and it seems the SpaceX CEO didn't need to sell any more of his Tesla stock to get the financing he needs to make the closure.

Elon Musk walking into Twitter HQ with a sink

Elon Musk walking into Twitter HQ with a sink

Firstly, Elon Musk proposed buying Twitter back in early April, which, at the time, he showed extreme excitement for. That excitement changed after he entered into the acquisition deal and began digging through Twitter's analytics that supposedly revealed to Musk that the world's second-biggest social media platform that he was about to purchase was underreporting the number of bot/spam accounts. Musk then tried to back out of the $44 billion deal, which sparked lawsuits being filed by both Twitter and Musk.

The dispute ended up in the Delaware Court of Chancery, and without getting bogged down in the many details and accusations thrown from both sides, Musk seemingly conceded his position, back peddled, and decided to fulfill his original deal of purchasing Twitter for $44 billion at $54.20 a share. The Delaware Court of Chancery gave a deadline of October 28 at 5:00 pm for the deal to be closed, or Musk would have to go to trial.

Now let's get into the numbers. To acquire Twitter, Musk needs to purchase 765.246 million shares, excluding 63 million in RSUs. Musk currently owns 73.115 million shares that are worth $3.963 billion at $54.20 a share. From these totals, Musk needs to pull in $37.5 billion in financing to purchase the rest of Twitter's shares. Banks have given Musk $13 billion in debt financing, bringing the total down to $24.51 billion.

Between April and May, Musk sold approximately $8.5 billion worth of his Tesla shares, which was followed by another $6.9 billion in sold Musk-Tesla shares in August, which means the SpaceX CEO had already gathered $15.4 billion for the Twitter deal before this month. Additional funding of $7.1 billion has already been secured from multiple big investors, bringing Musk's funding to $22.5 billion, just $2 billion short.

To acquire this $2 billion, speculation surfaced online that Musk was selling Tesla shares. However, the Tesla CEO was required to disclose his sales by 10:00 pm ET on Wednesday, which didn't happen, indicating that the financing was secured elsewhere.

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Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science and space news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

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