He leveraged his Tesla stock as collateral to buy Twitter. His antics haven’t just harmed Twitter but also Tesla. As the value of that stock drops the banks can force him to provide additional collateral or call in the loans. He would have to put up more stock or sell. Selling could create a spiral where the price continues to drop.
So deciding to have Tesla leave the Nordics, some of the most EV dense countries, will not only hurt Tesla and give the competition an edge, it might actually cost him stock in spaceX? Is that the analysis here?
He isn’t overly leveraged on twitter, and it might actually be 0 leverage. He was leveraged and then he sold a shit load of stock so he wouldn’t be and that’s a huge part of what crashed the stock price.
The only part I’m unclear on is who’s responsible for the 1 billion loan twitter has, twitter, or him.
But 1 billion isn’t of any concern to him, its too small an amount, and there’s spacex he can get funds from too if he needed it.
Edit: what is likely to happen though is twitter fails and needs a huge cash infusion, and he sells nultiple billions more Tesla stock to prop it up, bringing the price down again.
He is bringing back a very carefully selected group of banned people, people he thinks caters to the only specific core audience which remains on twitter: hateful right wing bigots.
He doesn’t have “enough money”. That’s the problem. He took investments from the Saudis and others to pay for Twitter. He puts on a good show, but he’s not spending any more of his money on this fiasco.
Here’s a good comparison I’ve found: let’s say you have a company and issue one million shares. You sell just a single one for $1. Now “technically” you own $999,999 worth of shares, even though you actually have one dollar.
His Tesla and SpaceX shares are worth a lot, but they’re not cash. If he started selling huge amounts, then the value would drop rapidly.
So why does he throw fits when he loses advertisers? A person who doesn’t care doesn’t comment on it and say “Fuck yourself” to Bob Iger and call for him to be sacked.
He is bringin back banned ppl, he is showing he doesn’t care about hurt advertiser fifis and he has enough money not to care :P
He leveraged his Tesla stock as collateral to buy Twitter. His antics haven’t just harmed Twitter but also Tesla. As the value of that stock drops the banks can force him to provide additional collateral or call in the loans. He would have to put up more stock or sell. Selling could create a spiral where the price continues to drop.
As Jeremy Clarkson once said, “Oh no, anyway.”
So deciding to have Tesla leave the Nordics, some of the most EV dense countries, will not only hurt Tesla and give the competition an edge, it might actually cost him stock in spaceX? Is that the analysis here?
He isn’t overly leveraged on twitter, and it might actually be 0 leverage. He was leveraged and then he sold a shit load of stock so he wouldn’t be and that’s a huge part of what crashed the stock price.
The only part I’m unclear on is who’s responsible for the 1 billion loan twitter has, twitter, or him.
But 1 billion isn’t of any concern to him, its too small an amount, and there’s spacex he can get funds from too if he needed it.
Edit: what is likely to happen though is twitter fails and needs a huge cash infusion, and he sells nultiple billions more Tesla stock to prop it up, bringing the price down again.
He is bringing back a very carefully selected group of banned people, people he thinks caters to the only specific core audience which remains on twitter: hateful right wing bigots.
We’ll see how the Saudis feel about him pissing away their money. Gonna be taking that Tesla stock from him
He doesn’t have “enough money”. That’s the problem. He took investments from the Saudis and others to pay for Twitter. He puts on a good show, but he’s not spending any more of his money on this fiasco.
https://www.forbes.com/sites/mattdurot/2022/10/31/saudi-prince-alwaleed-becomes-twitters-second-largest-shareholder/
He doesn’t have money.
Here’s a good comparison I’ve found: let’s say you have a company and issue one million shares. You sell just a single one for $1. Now “technically” you own $999,999 worth of shares, even though you actually have one dollar.
His Tesla and SpaceX shares are worth a lot, but they’re not cash. If he started selling huge amounts, then the value would drop rapidly.
So why does he throw fits when he loses advertisers? A person who doesn’t care doesn’t comment on it and say “Fuck yourself” to Bob Iger and call for him to be sacked.