7 ms·

I am struggling to think how Elon is going to pay the interest on the loan he took for buying Twitter. On other hand his collateral , tsla stock, is crashing.

I am struggling to think how Elon is going to pay the interest on the loan he took for buying Twitter. On other hand his collateral , tsla stock, is crashing. He got carried away to make this purchase during the rising tide of covid bull market. I suspect this is going to severely affect both tsla and twtr

criddell 4y ago
Before launching a GoFundMe for Elon, consider that when it’s that much money Elon doesn’t really have a problem, the bankers do. No matter what happens, Elon is going to be just fine.
- LightG 4y ago
  Only if you consider that your reputation doesn't matter ... (and I mean beyond just the 'yes people')
  - metadat 4y ago
    In this instance, the guys reputation is already trash binned.
- ohbtvz 4y ago
  That's a nice saying, but it does not really hold true. Sure, banks aren't going to repossess Musk's house or anything like that. But they will recover what they're owed, in some form or the other. That's pretty much all that they do, all day, every day.
pavlov 4y ago
Apparently he’s looking to replace some of the expensive debt with new margin loans backed by his TSLA shares: https://www.bloomberg.com/news/articles/2022-12-08/musk-bankers-mull-tesla-margin-loans-to-cut-risky-twitter-debt https://www.bloomberg.com/news/articles/2022-12-08/musk-bank... IMO this Twitter deal has been nothing but bad news for Tesla shareholders. The CEO is completely distracted and forced to sell his shares, and the company has been dragged into stupid culture wars. Tesla brand perception has crashed among Democratic-voting Americans who previously were its biggest supporters. It’s hard to believe he spent $44B and crashed his car company’s valuation and personal reputation just to bring back Babylon Bee’s trans harassment onto an also-ran social media platform. It’s even harder to believe that some people fantasize about moving to a Mars colony where a person with this kind of judgment is king.
- gonzo41 4y ago
  I work with scientists. Everyone who got a tesla feels a bit off about owning it now. Many jokes are had about being a musketeer, and the rise of twitler etc. It's all jokes, but then at the end of the day, everyone else drives home in some other car and they don't know what the CEO said about "tweet of the day" etc. Yet Musk is all in everyones face all the time. It doesn't seem to be a winning strategy at the moment.
  - TheHappyOddish 4y ago
    Sounds like a poor reflection of your companies culture. Your phone, clothes, the mug you're sipping from were all likely made from if not child labour, at best abusive and unfair labour. Worrying about the what moderately disagreeable thing the CEO of the company who made your car may have said on social media seems an incredible view.
  - kzrdude 4y ago
    Tesla cars have been described as an electric car software platform, so I'm not surprised they are nervous. The car is not just what it is today, but depends on remote services, regular updates and foremost it seems like the car can fundamentally change its features based on remote software updates. It's concerning, suddenly you do not trust that software vendor as much as you did before.
    - mindslight 4y ago
      Maybe $80k capital assets turning into scrap-value bricks would finally be significant enough for the general population to wise up to the scam that is the Internet of Trash.
  - ncr100 4y ago
    It was predictable that this day would come, given the overt, public, and controversial personality type of Musk.
- jimnotgym 4y ago
  > IMO this Twitter deal has been nothing but bad news for Tesla shareholders Can they do anything about it? Or is he protected like that Facebook Zucker?
sethd 4y ago
- nigerian1981 4y ago
  Michael instead of Jackson. Elton and not John. Perhaps it’s because Elon is quite a unique name.
- nemo44x 4y ago
  I think it’s because his first name is unique and he’s extremely famous. If his name was “Bob” then everyone would probably call him “Musk”.
- dag11 4y ago
  It's a pretty unique first name, and I feel like people (online, and IRL) refer to him by either first or last name 50% of the time. Sergey Brin also comes to mind. Unique name, people don't really say "Brin". Just Sergey, given the correct context. I don't think this is a case of people thinking they're "best buds with the man," like when people rarely referred to Jobs as "Steve."
  - Beldin 4y ago
    "Sergey" is a rather common name - if I were spewing forth Slavic/Russian names off the cuff, it'd be in the first 5 probably (with Dmitri and Piotr).
    - dag11 4y ago
      I really meant within the right context, which would be western folks in tech talking about notable people in the industry, and likely have mentioned Google at some point in the conversation. Sergey isn't a common name among the notable in western tech. Elon is even more unique of a name to western ears, so I was just pointing out that another (yet less unique) name also gets the first-name treatment. For more examples, I'd say Satya Nadella also gets 50/50 first/last name treatment in casual conversation.
  - jimnotgym 4y ago
drexlspivey 4y ago
Is this a joke? You are struggling to think how the richest man on the world can afford to pay interest on a loan? He has assets worth $150B
- mikeryan 4y ago
  The interest on the loan is $1B a year. Twitter’s revenue in 2021 was $6B. Can he pay the interest back? Sure. Is he going to have 1B in liquid capital every year? Harder. Does he ever recoup the cost of buying Twitter at that rate? outlook doesn’t look good.
  - UncleEntity 4y ago
    Just because he’s super-rich doesn’t mean he’s immune to bad decisions. Becoming rich and staying rich are two different skill sets. Many a fortune has been squandered by people pursuing bad ideas.

criddell 4y ago

Before launching a GoFundMe for Elon, consider that when it’s that much money Elon doesn’t really have a problem, the bankers do. No matter what happens, Elon is going to be just fine.

LightG 4y ago
Only if you consider that your reputation doesn't matter ... (and I mean beyond just the 'yes people')
- metadat 4y ago
  In this instance, the guys reputation is already trash binned.
ohbtvz 4y ago
That's a nice saying, but it does not really hold true. Sure, banks aren't going to repossess Musk's house or anything like that. But they will recover what they're owed, in some form or the other. That's pretty much all that they do, all day, every day.

pavlov 4y ago

Apparently he’s looking to replace some of the expensive debt with new margin loans backed by his TSLA shares: https://www.bloomberg.com/news/articles/2022-12-08/musk-bankers-mull-tesla-margin-loans-to-cut-risky-twitter-debt https://www.bloomberg.com/news/articles/2022-12-08/musk-bank... IMO this Twitter deal has been nothing but bad news for Tesla shareholders. The CEO is completely distracted and forced to sell his shares, and the company has been dragged into stupid culture wars. Tesla brand perception has crashed among Democratic-voting Americans who previously were its biggest supporters. It’s hard to believe he spent $44B and crashed his car company’s valuation and personal reputation just to bring back Babylon Bee’s trans harassment onto an also-ran social media platform. It’s even harder to believe that some people fantasize about moving to a Mars colony where a person with this kind of judgment is king.

gonzo41 4y ago
I work with scientists. Everyone who got a tesla feels a bit off about owning it now. Many jokes are had about being a musketeer, and the rise of twitler etc. It's all jokes, but then at the end of the day, everyone else drives home in some other car and they don't know what the CEO said about "tweet of the day" etc. Yet Musk is all in everyones face all the time. It doesn't seem to be a winning strategy at the moment.
- TheHappyOddish 4y ago
  Sounds like a poor reflection of your companies culture. Your phone, clothes, the mug you're sipping from were all likely made from if not child labour, at best abusive and unfair labour. Worrying about the what moderately disagreeable thing the CEO of the company who made your car may have said on social media seems an incredible view.
- kzrdude 4y ago
  Tesla cars have been described as an electric car software platform, so I'm not surprised they are nervous. The car is not just what it is today, but depends on remote services, regular updates and foremost it seems like the car can fundamentally change its features based on remote software updates. It's concerning, suddenly you do not trust that software vendor as much as you did before.
  - mindslight 4y ago
    Maybe $80k capital assets turning into scrap-value bricks would finally be significant enough for the general population to wise up to the scam that is the Internet of Trash.
- ncr100 4y ago
  It was predictable that this day would come, given the overt, public, and controversial personality type of Musk.
jimnotgym 4y ago
> IMO this Twitter deal has been nothing but bad news for Tesla shareholders Can they do anything about it? Or is he protected like that Facebook Zucker?

sethd 4y ago

nigerian1981 4y ago
Michael instead of Jackson. Elton and not John. Perhaps it’s because Elon is quite a unique name.
nemo44x 4y ago
I think it’s because his first name is unique and he’s extremely famous. If his name was “Bob” then everyone would probably call him “Musk”.
dag11 4y ago
It's a pretty unique first name, and I feel like people (online, and IRL) refer to him by either first or last name 50% of the time. Sergey Brin also comes to mind. Unique name, people don't really say "Brin". Just Sergey, given the correct context. I don't think this is a case of people thinking they're "best buds with the man," like when people rarely referred to Jobs as "Steve."
- Beldin 4y ago
  "Sergey" is a rather common name - if I were spewing forth Slavic/Russian names off the cuff, it'd be in the first 5 probably (with Dmitri and Piotr).
  - dag11 4y ago
    I really meant within the right context, which would be western folks in tech talking about notable people in the industry, and likely have mentioned Google at some point in the conversation. Sergey isn't a common name among the notable in western tech. Elon is even more unique of a name to western ears, so I was just pointing out that another (yet less unique) name also gets the first-name treatment. For more examples, I'd say Satya Nadella also gets 50/50 first/last name treatment in casual conversation.
- jimnotgym 4y ago

drexlspivey 4y ago

Is this a joke? You are struggling to think how the richest man on the world can afford to pay interest on a loan? He has assets worth $150B

mikeryan 4y ago
The interest on the loan is $1B a year. Twitter’s revenue in 2021 was $6B. Can he pay the interest back? Sure. Is he going to have 1B in liquid capital every year? Harder. Does he ever recoup the cost of buying Twitter at that rate? outlook doesn’t look good.
- UncleEntity 4y ago
  Just because he’s super-rich doesn’t mean he’s immune to bad decisions. Becoming rich and staying rich are two different skill sets. Many a fortune has been squandered by people pursuing bad ideas.