You are reading the terms of the deal incorrectly. He had the option to pay 1b only under the specific case that his financing fell through. That never happened, quite the opposite the banks backing this deal have been adamant that they were ready to go but Musk was dragging his feet.

Meanwhile, Musk was getting absolutely savaged in the Delaware chancery court and they were just in discovery. He was going to lose and that would be more embarrassing (somehow) than this outcome.

All because he went off half cocked and didn’t write bog standard contingencies into his offer.

He’s come off looking like an absolute simpleton in this and that’s the better outcome for him than if the court case had proceeded.