As a non shareholder, would it not arguably stabilise Tesla's stock value for Musk to hold less of it, and more to lie with institutions and longterm investors? Maybe lower, slower growth, but "better" in some ways?
The speculative component of investment tied to his ego isn't exactly sensible.
It's a little too late for it to matter. My understanding is Twitter was bought with debt secured by TSLA. If the debt gets called the stock gets liquidated regardless of Musk.
Even if the shares are his collateral, they're still his for now, which means he still has outsized influence on the company. The GP is arguing that if he were to sell a bunch, that might be better for the health of the company.