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Because they know he has absolutely no ability to do so. They are simply trying to collect legal fees at this point.
by scaramanga 4y ago
Because they know he has absolutely no ability to do so. They are simply trying to collect legal fees at this point.
- bandyaboot 4y agoI mean, he does though right? It’s just that doing so at this point would cause a world of hurt for Tesla and its shareholders?
- scaramanga 4y agoI don't think so, I mean, you are not just going to place a single market order for $44bn of stock, you are going to have liquidity problems because there is not that much buy-side volume in the market, so the price must fall drastically to attract new buyers. Also I assume musk has legal obligations not to do stuff like that to begin with, as an executive with fiduciary responsibilities to shareholders. If Musk can tank Tesla, Exxon execs can dismantle Exxon to save the environment. But there's also the fact that a lot of his Tesla shares are already leveraged on loans. The most likely course would be for him to take out loans on the remaining unleveraged stock, but he doesn't have enough of that at the rates the banks are offering. Anyway, I'm no expert on Musk, and I have almost zero interest in Tesla, or Twitter, or any of this clown show. So maybe my ballpark guesstimations of all the relevant numbers are way off. So take it all with a huge pinch of salt. I am just some uninformed spectator watching two lizards fight in the dust and speculating who will win or whatever :) Edit: leveraged -> unleveraged, woops
- bandyaboot 4y agoAll fair points.
- danaris 4y agoHe absolutely has the ability. He's demonstrated that publicly, with his verified presentation of having raised the $44 billion a few weeks ago (through a combination of financial instruments). What he doesn't have is the inclination.