Suit and countersuit How $44bn takeover went sour

Elon Musk did not become the world’s wealthiest person through a lack of confidence.

- Dan Milmo

But the Tesla chief executive revealed on Tuesday that he had sold $6.9bn (£5.7bn) worth of shares in the car maker, in case he loses his attempt to walk away from a $44bn takeover of Twitter.

Twitter is suing Musk in Delaware court of chancery over his abandonment of the deal and wants to make him buy the company.

In a countersuit released last week, Musk put his side of the argument. There is $44bn at stake and the language is just as punchy as Twitter’s in the original lawsuit, when the company described his behaviour as ‘a model of bad faith’. The preliminary statement accuses, Twitter of making disclosures to the US financial watchdog that were “far from true”.

“Instead, they contain numerous, material misrepresentations or omissions that distort Twitter’s value and caused the Musk parties to agree to acquire the company at an inflated price. Twitter’s complaint, filled with personal attacks against Musk and gaudy rhetoric more directed at a media audience than this court, is nothing more than an attempt to distract from these misrepresentations,” it said.

Strong words, but Musk will need strong evidence as well to convince the judge.