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The market is acting as if the Twitter purchase was financed in part by a margin loan on Musk's TSLA shares. https://www.nasdaq.com/articles/margin-calls-fire-s
by lern_too_spel 4y ago
The market is acting as if the Twitter purchase was financed in part by a margin loan on Musk's TSLA shares. https://www.nasdaq.com/articles/margin-calls-fire-sales-why-elons-twitter-blowup-could-crash-tsla-stock https://www.nasdaq.com/articles/margin-calls-fire-sales-why-....
If Tesla can't show growth beating market expectations, or if he can't get money out of Twitter, or if the Fed keeps raising rates, he could be forced to sell TSLA shares to deleverage, so the worse the Twitter situation looks, the more investors avoid TSLA, compounding his problems.
I am convinced at this point that the "cloudy head" that Musk reported during his first COVID infection pre-vaccination is an ongoing medical condition, perhaps a mild encephalitis, leading to rash actions because the brain fog renders him incapable of thinking through consequences . https://www.reuters.com/article/us-health-coronavirus-musk/elon-musk-says-most-likely-has-a-moderate-case-of-covid-19-idUSKBN27V017 https://www.reuters.com/article/us-health-coronavirus-musk/e...