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This is a reference to Elon Musk's financial strategy, specifically https://www.reuters.com/article/us-tesla-offering-banks/elon-musk-owes-507-million-to-banks-
by azernik 7y ago
This is a reference to Elon Musk's financial strategy, specifically https://www.reuters.com/article/us-tesla-offering-banks/elon-musk-owes-507-million-to-banks-helping-tesla-raise-capital-idUSKCN1S901E https://www.reuters.com/article/us-tesla-offering-banks/elon...
Essentially, he has almost nothing in cash, and instead of selling stock to raise cash he borrows money with his stock as collateral. This is why he's so monomaniacally focused on his stock value and public image.
For a more professional, but login-walled, overview, see https://www.economist.com/business/2016/10/22/countdown https://www.economist.com/business/2016/10/22/countdown
- one2zero 7y agoAhh the paywall. Let me keep reloading and smash esc until i get it to load without the paywall.
- azernik 7y agoIt's only loginwalled; if you're okay with them having your e-mail, you can read several articles a month.
- o-__-o 7y agoThis isn’t just Elon, Oracles Founder did the same thing. Except they actually have a company with assets. So I don’t get what OP was rambling on about “non real assets”. A fucking manufacturing plant is an asset. My servers are not. Looks like the financial world is working as it should...
- azernik 7y agoThe specific $500M number was a reference to Elon, but yeah, given how successful this strategy is I'm not surprised the Oracle founder uses it too. I agree with you that these cases are where the companies have tangible, provable value, even if they're not profitable right now.