6 ms·

More like he realized he doesn't really have the money, only big mouth. See also the recent news about how he pushes for 10% layoffs at Tesla.

• mlindner 4y ago
  He has the money already. And the 10% layoffs were much misreported. The layoffs were only among salaried employees with the release simultaneously saying that they will be increasing hiring for non-salaried production employees. A 10% layoff of only salaried workers isn't that large of a layoff.
  • sixQuarks 4y ago
    Too much Elon hate here, your factual statements goes against the narrative.
  • heretogetout 4y ago
    > A 10% layoff of only salaried workers isn't that large of a layoff. How many people does this amount to?
    • mlindner 4y ago
      Given that the salaried work force is going to be less than half by economic necessity of a manufacturing company, the actual layoff then would be less than 5%.
      • heretogetout 4y ago
        I'm not sure that assumption is reasonable, especially if a company has to front-load R&D.
  • IanCal 4y ago
    > He has the money already. I thought he had to seek additional funds because tesla stock dropped.
• JumpCrisscross 4y ago
  > he realized he doesn't really have the money It's somewhat wild to posit this given how much of his balance sheet is public knowledge. He doesn't have the liquidity, sure. But there's a wide gap between illiquidity and insolvency, and he's not particularly leveraged.
  • qzw 4y ago
    He may not be particularly leveraged, but one could argue that a significant portion of his net worth in the form of Tesla's sky-high valuation is more or less "faith-based". To what extent his Twitter excursion would erode that faith and precipitate a steep drop in Tesla's stock price is still not completely known. So in that sense, it's possible to debate about whether he really "has the money" to do this deal.
    • JumpCrisscross 4y ago
      > it's possible to debate about whether he really "has the money" to do this deal Sure, but given the facts on the ground, he has more than enough capital to personally fund the equity. (The debt, LBO style, is held on Twitter's books.) We know there remain commitments from other investors for the equity, so that alone should draw a line under such discussions. Elon Musk absolutely can fund this deal. He may not want to. And that isn't true in every state of the world. But currently, and in any proximate world state, him not having the money isn't an issue.
      • lupire 4y ago
        LBOs are amazing. You can steal any company as long as you don't care if it gets bankrupted (and then you can steal its assets in bankruptcy)
  • rchaud 4y ago
    One of the ways to stay rich is to use leverage. Using 100% of your own funds is unheard of. Musk obviously is not going to risk $44b of his personal fortune on Twitter.
• rcMgD2BwE72F 4y ago
  >See also the recent news about how he pushes for 10% layoffs at Tesla. These reports are wrong (Reuters is not reliable when it comes to leaks from Tesla). Tesla intends to lay off about 10% of salaried workers, which make less than 50% of the company's headcount (mostly managers). The company confirmed they're still hiring and will have more employees by EOY versus the day they announced the planned layoff.
  • FireBeyond 4y ago
    So about 5% of the company's workers, in the highest earning segment. > The company confirmed they're still hiring That's not accurate, for salaried workers. Similarly, there is a hiring freeze for salaried workers. They're still hiring hourly workers.