Only to certain point. At that point you can't spend more than other party. There is only so much legal work that can be done for one case.
Not that bar isn't very high, we are possibly talking about millions or tens of millions in billings, but either side have that and it will make sense for both to spend it in every case.
Is it clear that Elon is more liquid than Twitter? Twitter has several billion in cash. Musk is reported to have only 3b cash. Tesla and SpaceX may need his capital to survive the downturn. They both have an arsenal of options to raise further cash.
I realise Elon is a bigger fish but he is a highly leveraged and constrained one…if anyone has more insight into this dynamic I’d interested to hear it
You can see Elon sold something like $8-$12 billion in TSLA stock in the past few months. Assuming it didn't get spent on SpaceX or somewhere else (it was supposed to be used for the Twitter buyout) he has more cash than Twitter. But that doesn't really matter, at a certain point the amount they spend in legal services will reach such diminishing returns that it's not worth it.
When it comes to court battles, relative depth matters.