The difference, of course, is that the bank doesn't really want your house. That is a substantial burden on them to extract their value (they are forced to sell a house, which comes with its own expenses). The bank is perfectly fine with taking on an asset like stock, which has value just sitting there. And given the speed at which the loans were approved and the fact that they were approved without a due process period, no, the banks didn't seem too concerned with investigating the financials of the deal. Largely because of the fact that the loans are secured by Musk's assets.
TSLA stock is not just “value sitting there”. It’s lost 50% of its value this year, which puts the borrower (Musk) in a much more precarious position if he defaults. Ditto the banks. But everybody else except you already knew that. What I want to see are your sources to prove what the $13 billion in loans are secured with and proof that the banks just rubber-stamped $13 billion in loans. I mean, hopefully your AI isn’t making this up as you go along. Awaiting your sources or citations.
I would agree except that that's a lot of money. I do think there's a psychological motivation. It's crazy that he's been this active as a tweeter after taking over the business. I think the main problem is that as smart as he is, he started believing all the crap about the fact that there was an elite group running things that would happily pay to maintain their status symbol, and that everyone hated young urban types as much as he and his buddies do, and that there was a big market without them. Plus the fact that he could arbitrarily lay off substantial numbers without much planning or thought, and it wouldn't matter.
The borrower, sure. The bank, not really depending on how they wrote the loans. Also, thanks for pointing out how much Tesla is crashing. Sure is an odd thing for a company run by such a genius. Hmm, you need me to Google basic information for you? Perhaps you shouldn't be participating in this conversation if you don't actually know what you are talking about with this deal (and you especially shouldn't be telling others they don't know what they are talking about when you clearly don't know basic facts about the deal). If you want, go Google the initial securing of financing, see how long it took from his initial offer and see how the loans were secured. Happy hunting!
Youre right. It’s going as smoothly.. kind of like Brexit. And who can forget that CEO entrepreneurs never make mistakes?
Maybe. But he did try to back out of it suggesting that he valued the deal less than he offered at some point later.
I'm just laughing at you telling somebody that they don't know what they are talking about right before admitting that you actually don't know what you are talking about. Quality stuff.
All you said was some very smart people are executing this deal so it must be a good idea. I don’t think that’s a good argument. It is an argument, sure, but it doesn’t change all the risk and erratic decisions I outlined. There is little to suggest that a grand plan exists. Twitter has no infrastructure that is unique to it. It’s value is in the user base and information it has stored. Even with those resources Twitter has been unable to break into profitability while other tech giants have. I know you love Elon but this was big business version of drafting Ryan Leaf.
The point is you can’t offer an educated assessment of Elon’s takeover of Twitter from your mom’s basement. You probably have no business experience and you’re just regurgitating the same talking points that the DNC provided you with two weeks ago. Even Wall Street’s most savvy investors can’t evaluate this deal after two weeks. Literally for years, there were scores of analysts and pundits who predicted Tesla would never get off the ground. We’re two weeks into Twitter. Quit pushing out the DNC talking points as if you have any sort of business acumen. You don’t. You are just parroting a script.
Lol, tell me you have no connections to the tech financing world (or broader tech world) without telling me you have no connections to the tech financing world. Everybody in that world is evaluating the deal right now. Nobody is willing to declare their positions in finality, but it is like watching a train wreck for people in that world, nobody is looking away and everybody is already talking about how it happened. For example, here is Chris Sacca's take (from his mom's basement, I guess): Language warning if you click through to the thread.
Hilarious. I’m living in my mom’s basement and have absolutely no experience in business. Very thoughtful retort. You couldn’t be more wrong. I am sorry I triggered you by questioning your boyfriend’s business deal. Apparently he’s off limits. As a courtesy I expect that you won’t post any opinions on Biden until you get yourself elected to the oval office.
Posted on Twitter by one of the people who was an initial investor in Twitter (don't know if he still owned equity- the big winners so far are the people who did and got a massive premium for a company that was likely already overvalued). Also, one of the best M&A people in tech.
So are you staying off the Biden threads until elected President or will I see you debating his actions on here? Just curious if you are keeping the same standard you have for Elon… I mean… Elon Elon Elon
