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Right now Elon can bankroll SpaceX for decades without even noticing losses, just like Bezos with Blue Origin. The difference is that SpaceX has results and rev
by KptMarchewa 6y ago
Right now Elon can bankroll SpaceX for decades without even noticing losses, just like Bezos with Blue Origin. The difference is that SpaceX has results and revenue.
- Teever 6y agoDoes Elon musk actually have enough liquid assets to do this? I was under the impression that most of his personal wealth was in the form of Tesla stock.
- dillondoyle 6y agoHe gets loans using stock as collateral. billionaires have entirely different resources than the rest of us. AFAIK he has slightly >50% of his Tesla stock pledged as collateral for loans right now. At tiny interest rates (wouldn't be surprised if he gets even better private bank rates because they want in on his other business or IPO etc). it's basically free money - until something goes wrong... especially in the crazy dynamic we seem to be in now where fast stock growth = more access to free money = faster stock growth cycle. until pop
- rblatz 6y agoIn a correction he is facing a nasty margin call.
- dillondoyle 6y agoWhich would in turn probably hurt (?crash) the stock. It's a game of chicken. GME again! From an outside who only reads the free bloomberg it feels like there's a lot of this going on right now just boosting everything especially with basically free money; the recent Archegos blow up as an example of the down side
- KptMarchewa 6y agoI've heard about 50% stock as collateral when Tesla was 20% of its current value. It does not make sense now - that would mean he took ~90 billion dollars of loans.