Musk already owns roughly 9% of Twitter stock and needs about $37.5 billion to pay for the rest. He has about $13 billion in debt coming in to help fund it and has sold a little more than $15 billion in Tesla stock already. Then there is another $7 billion coming from other people. That leaves about $2 billion in additional stock sales.
But wait, there’s more. Future Fund Active ETF co-founder Gary Black estimates another $3 billion will be needed to pay holders of Twitter’s stock-based compensation.
That’s means Musk could need to sell a total of about $5 billion in Tesla stock. Musk can’t sell any stock until Tesla reports third-quarter earnings on Oct. 19. Bear Traps Report author Larry MacDonald believes investors will take advantage of that window and are “front-running” Musk, selling before he can.
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