Elon Musk’s sales are a red flag

Elon Musk is selling Tesla shares again. Even if he’s doing it to fund a potential Twitter deal, it should still alarm investors, sending a bright red warning signal for tech stocks, which have risen nearly 20 percent on average since mid-June.

Yes, Elon Musk probably won’t be selling the shares voluntarily. He is taking precautions in case he loses his dispute with Twitter in court. Then he would have to take over the short message service as originally agreed for $44 billion. If he lost in court and then had to sell in a hurry, it could have triggered a price slide.

>> Read about this: Why the Twitter takeover process is also a threat to Tesla shares