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by wfaler
1305 days ago
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I'm wondering if this erratic behaviour is Musk having some sort of breakdown over how things are unravelling? * Currently that revenue is cratering and things are not going well. Bankrupcy is a real risk with the high debt servicing cost for the take-over.
* If the value is going quickly in the direction of $0, banks will call the loans.
* If banks call the loans, he has to sell Tesla stock to pay the $44bn.
* If Musk starts to sell Tesla stock at that scale, the value of Tesla could quickly crater in the current climate. It's the last bubble-stock of this cycle, still 80% way to go down, if valued like its auto industry peers. The outcome of that could be that even selling his entire holding of Tesla, Musk could end up broke, and potentially still owe money from the Twitter take-over. It would make the wealth destruction of FTX look like a Sunday stroll in the park. |
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