Will Elon Musk have to sell Tesla stock to buy Twitter?

SpaceX and Tesla CEO Elon Musk offered to purchase Twitter in a $43 billion cash takeover on Wednesday in order to restore its commitment to what he calls “free speech.”

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk wrote in a disclosed letter addressed to Twitter Chairman Bret Taylor. 

However, Twitter CEO Parag Agrawal informed the firm’s employees that the board is still in the middle of assessing Musk’s offer to transform the company privately, according to a report by Bloomberg. The report added that Agrawal did not hint at the board inclining towards the offer and called it a “rigorous process.”

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Does Elon Musk have enough funds to buy Twitter?

In his regulatory filing, Musk stated that the offer is subject to “completion of anticipated financing.” 

In an interview at the TED 2022 conference, the Tesla chief executive officer claimed that he has “sufficient assets” to close the deal. But even though he continues to reign over the world as the wealthiest person with a $265 billion fortune, most of his wealth is tied up in SpaceX and Tesla stocks. 

Will Musk sell Tesla stock to raise funds?

While it is unclear the amount of cash Musk has used up to seal the deal, according to a Forbes report, he has already invested over half of his Tesla shares to complete the Twitter deal.

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What lies ahead?

According to financial analysts, Twitter might hire advisers and bankers who could evaluate the deal. According to a report by Reuters, the social media firm was previously reviewing the offer under the supervision and guidance of Goldman Sachs and Wilson Sonsini Goodrich & Rosati.