Buying Twitter was the biggest gamble of Musk's career. Now he — and his empire — are cracking under the pressure.

This is why using Tesla stock to source cash all the time gets hairy. If Tesla shares fall below a certain level, the banks can call in those personal loans — leaving Musk on the hook. And the quickest way for Tesla’s stock to drop off a cliff is for investors to get wind of a big Musk sale. And of course, he needs to make sure that he still holds on to all the Tesla stock he’s pledged as collateral to the banks. Unfortunately, though, the easiest way for Musk to fill the gaping hole in Twitter’s balance sheet is to sell Tesla shares. You see how this could be a problem.

  • dangblingus@lemmy.dbzer0.com
    271·
    11 months ago

    Yeah I don’t buy it. First of all, Business Insider is trash. Written by 20 year olds making minimum wage + bonus based off of impressions. Until Musk’s bottom line actually takes a hit, he’s not going anywhere. Also, can we drop the pretense already that he bought Twitter because he thought he could make it better?

    • yesman@lemmy.world
      101·
      11 months ago

      I read the article and found the arguments compelling. Tesla has a market cap of 750B and everybody knows that’s a fiction. Since Musk’s debt is secured with that funny money, a correction could easily cause a death spiral as creditors did a “run” on his debt.

      You have to admit, Musk is certainly behaving like a man under tremendous pressure.

    • schmorp@slrpnk.netEnglish
      6·
      11 months ago

      Who owns business insider btw?

      Edit: looked it up, it’s Axel Springer SE

      • Saledovil@sh.itjust.works
        2·
        11 months ago

        Axel Springer. Those guys used to publish a good gaming magazine I used to read in my youth. Sadly, that went away.

        • schmorp@slrpnk.netEnglish
          2·
          11 months ago

          Axel Fucking Springer is of German trash newspaper BILD of ‘WE ARE POPE’ title fame.

          There is no large online journalism that I would still read without so many grains of salt that everything tastes like shit. Still hope the muskrat goes down and some of his billionaire bros with him. There will be banks going down, as usual, and then governments will ask us people to pay for all the shit that went down. I hope this time we tell them to pack it.

          • Saledovil@sh.itjust.works
            11·
            11 months ago

            The gaming magazine was good though, but it deteriorated over time. And the publication ceased 2019. I stopped reading well before then.