Updated at 9:44 am EST
Tesla (TSLA) - and Twitter (TWTR) - shares were active Tuesday following a report that suggested Elon Musk is looking for broader financing options to support his $44 billion takeover of the social media group in a move that could put less pressure on existing Tesla investors.
Reuters reported late Monday that Musk, who has already sold around $8.5 billion in Tesla shares over the past month, is seeking financing alternatives to achieve the $21 billion he needs to provide personally for the deal, which is expected to close sometime in the autumn, and wants to tie-up less of his approximately 172 million in Tesla shares along the way.
CNBC's David Faber, however, reported the Musk is looking to syndicate a portion of hits equity commitment, suggesting he's looking for partners as opposed to financiers.
Tesla shares have fallen 21.2% since Musk first made his interest in Twitter public on April 4 as investors discounted the value of Musk's $62.5 billion in pledged stock used to secure margin loans.
The move could also cement Musk's intention to go through with the $44 billion takeover, given both the complexity surrounding the deal and the fact that his personal portfolio of businesses and leadership position has left him with little time to devote to the kind of large-scale turnaround he claims is required at the micro-blogging website.when completed, as well as distraction and management inertia in the short-term as the group remains focused on the implications of a bovada boss and the potential de-listing of its shares from the Nasdaq. that it needs more time to count the value of shares that Musk has pledged against various personal and business loans ahead of its August 4 AGM in Austin.
Tesla shares were marked 0.8% lower in early trading to change hands at $896.10 each while Twitter edged 0.05% lower to $49.11 each, still some 9% south of Musk's $54.20 bid price.