It seems like Elon Musk will be obliged to close his Twitter deal after he lost $7 billion worth of Tesla stock, according to a Wednesday note from Wedbush.
The richest man in the world and CEO of Tesla said on Twitter that his sale of Tesla stock in the last few days was “to avoid an emergency sale of Tesla stock” if he’s forced to purchase Twitter and some of his quity financings fall through.
According to Wedbush analyst Dan Ives, Musk’s Tesla stock sale is “writing on [the] wall [that a] deal could be in the cards,” the note said. Ives raised his Twitter price target to $50 from $30, just shy of Musk’s agreed-upon buyout price of $54 per share, or about $44 billion.
“The Street and legal experts across the board view Twitter as having a ‘strong iron fist upper hand’ heading into the Delaware court battle this Fall after months of this fiasco and nightmare playing out since April,” Ives said, adding that “Twitter’s board is holding Musk’s feet to the fire to finish the deal at the agreed upon price.”