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Musk was a hair's breadth away from taking the SEC "420 funding secured" case to court, and spending who knows how much political goodwill, attention and effort
by marvin 4y ago
Musk was a hair's breadth away from taking the SEC "420 funding secured" case to court, and spending who knows how much political goodwill, attention and effort towards that for months or years, instead of building the world's most interesting car company. During the most critical months of Tesla's history. He was convinced he was right and unwilling to let the thing disappear in a settlement. That was in 2018, four years ago. IIRC, only a conversation with Mark Cuban concerning the distraction of a lawsuit convinced him otherwise.
Oh, and this was immediately after the Thailand cave diver pedo fiasco, and immediately before the Joe Rogan marijuana controversy.
Two years before this, in 2016, Tesla bought the unprofitable SolarCity at a price that's truly ridiculous considering Tesla's share price today. I hardly think they've made more than a token profit in the eight years since. The thing seemed like a spur-of-the-moment decision.
I don't think we're seeing a difference of magnitude in Musk's impulsive big decisions. Pretty sure they're strongly correlated with the personality traits that's given us the successes of SpaceX and Tesla already. I think everyone should just lean back, relax and enjoy the drama if that's what they're into. Or read a good book otherwise, and check back on the progress of Musk's companies in five years.
Also need to point out that the Twitter purchase hasn't closed yet. Musk pulling out of that at the last moment would not be very unexpected.
- scythe 4y ago>I hardly think they've made more than a token profit in the eight years since. I want to push back on this a little: Tesla Energy's revenue was $2.79B in 2021, while SolarCity's revenue topped out at $735M in 2016 just before acquisition. SolarCity had seen 82% YoY revenue growth 2015-6, and apparently averaged 30% YoY growth for the next five years. That's not necessarily a great purchase, but it's not terrible. >the Twitter purchase More than anything, it was astonishingly bad timing. Few investors have ever managed to buy effectively $40B worth of tech stocks right before the whole NASDAQ collapses. But even fewer can time the market!
- marvin 4y agoGood points, thanks for providing the nuance.
- FireBeyond 4y ago> Two years before this, in 2016, Tesla bought the unprofitable SolarCity at a price that's truly ridiculous considering Tesla's share price today. I hardly think they've made more than a token profit in the eight years since. The thing seemed like a spur-of-the-moment decision. It was literally to save a company his brother was heavily invested into from bankruptcy, and using Tesla to do so.