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it should be easy to recapitalize Twitter using sales of Tesla stock, so I cant believe its an actual shortage of cash. Probably trying to game the litigation c

by MrMan 4y ago

it should be easy to recapitalize Twitter using sales of Tesla stock, so I cant believe its an actual shortage of cash. Probably trying to game the litigation cycle and pay at the very last minute? But to what end, it seems like a doomed game to play, you either have money coming in or you dont.

TigeriusKirk 4y ago
With a fraction of the people, they must only need a fraction of the space. Maybe it's some tactic to renegotiate the lease? Though that seems unlikely to work out.
- starkd 4y ago
  He's very likely to move Twitter HQ to Texas, like he did with Tesla. It would actually be to his advantage.
kibwen 4y ago
Tesla stock is down 69% (yes, really) over the past 12 months, and part of what's triggering the price collapse is Musk's own sell-off. When a CEO divests from their company, markets historically do not react with confidence. The more Elon Musk sells, the less value he has and the more stock he'll have to sell the next time that he wants to leverage his wealth to buy something pointless.
- vlovich123 4y ago
  Bezos is selling off tens of billions of Amazon stock a year. Amazon stock doesn’t seem to be reacting to it. I don’t think the market reacted so much to Musk vs the fact that Tesla selling prices have plummeted because it turns out they’ve saturated their market (but until then people believed in the hockey stick growth). It was obviously ridiculous because secondary market sales higher than direct sales cannot be sustained for very long (it indicates you can’t meet supply, but there’s obviously not an infinite amount of supply at the higher price point). That + the collapse of most stocks would account for most of the drop I think. There’s possibly some amount of knock on effect of Musk’s advertised Twitter problems creating a PR problem for him in terms of can he focus on Tesla, Twitter and SpaceX properly. There’s only so many drugs you can take to help you with that.
  - ghola2k5 4y ago
    Bezos isn’t the CEO of Amazon…
    - vlovich123 4y ago
      Bezos started selling stock while still CEO and remains the largest or one of the largest shareholders. He’s also still the executive chair of the board. If you think that a founder like Bezos selling his shares would have less of an impact than Jassey, I think you’re misunderstanding how this signaling works. In fact, most CEOs will sell shares in specific IRS-approved plans and it means nothing to the overall price.
  - deleted 4y ago
    [deleted]
  - Zigurd 4y ago
    It can be a combination of things. Beyond Meat shares got hammered. The reasons are diverse: They lost a deal with McDonalds. And they apparently reached market saturation at a much lower level than expected.
- propogandist 4y ago
  Tesla surged pointlessly during the pandemic, as with many stocks. Stock valuations are dropping across the board. Amazon rallied too, and even though it has 2X revenue and built a large moat since covid lockdowns, their current stock price resembles what it is was in Jan 2020.
  - enkid 4y ago
    Stocks aren't down 69%
- rchaud 4y ago
  > Tesla stock is down 69% (yes, really) CEO to employee compensation ratio: 420:1
Zigurd 4y ago
There are good reasons to believe that Musk is running low on liquidity. If Musk took any margin debt at all when TSLA was above $200, that's at risk of margin calls. Published reports say Musk is among the most prolific margin borrowers, with a very high percentage of TSLA shares pledged to margin debt. On top of that, Tesla's board is at risk of a shareholder suit if it does not enforce its own margin debt policy for board members and top management. Elon's brother is also a big margin borrower, and is subject to a 25% limit.
freejazz 4y ago
>Probably trying to game the litigation cycle and pay at the very last minute? What is statutory interest in SF?

by MrMan 4y ago

TigeriusKirk 4y ago

With a fraction of the people, they must only need a fraction of the space. Maybe it's some tactic to renegotiate the lease? Though that seems unlikely to work out.

starkd 4y ago
He's very likely to move Twitter HQ to Texas, like he did with Tesla. It would actually be to his advantage.

kibwen 4y ago

Tesla stock is down 69% (yes, really) over the past 12 months, and part of what's triggering the price collapse is Musk's own sell-off. When a CEO divests from their company, markets historically do not react with confidence. The more Elon Musk sells, the less value he has and the more stock he'll have to sell the next time that he wants to leverage his wealth to buy something pointless.

vlovich123 4y ago
Bezos is selling off tens of billions of Amazon stock a year. Amazon stock doesn’t seem to be reacting to it. I don’t think the market reacted so much to Musk vs the fact that Tesla selling prices have plummeted because it turns out they’ve saturated their market (but until then people believed in the hockey stick growth). It was obviously ridiculous because secondary market sales higher than direct sales cannot be sustained for very long (it indicates you can’t meet supply, but there’s obviously not an infinite amount of supply at the higher price point). That + the collapse of most stocks would account for most of the drop I think. There’s possibly some amount of knock on effect of Musk’s advertised Twitter problems creating a PR problem for him in terms of can he focus on Tesla, Twitter and SpaceX properly. There’s only so many drugs you can take to help you with that.
- ghola2k5 4y ago
  Bezos isn’t the CEO of Amazon…
  - vlovich123 4y ago
    Bezos started selling stock while still CEO and remains the largest or one of the largest shareholders. He’s also still the executive chair of the board. If you think that a founder like Bezos selling his shares would have less of an impact than Jassey, I think you’re misunderstanding how this signaling works. In fact, most CEOs will sell shares in specific IRS-approved plans and it means nothing to the overall price.
- deleted 4y ago
  [deleted]
- Zigurd 4y ago
  It can be a combination of things. Beyond Meat shares got hammered. The reasons are diverse: They lost a deal with McDonalds. And they apparently reached market saturation at a much lower level than expected.
propogandist 4y ago
Tesla surged pointlessly during the pandemic, as with many stocks. Stock valuations are dropping across the board. Amazon rallied too, and even though it has 2X revenue and built a large moat since covid lockdowns, their current stock price resembles what it is was in Jan 2020.
- enkid 4y ago
  Stocks aren't down 69%
rchaud 4y ago
> Tesla stock is down 69% (yes, really) CEO to employee compensation ratio: 420:1

Zigurd 4y ago

There are good reasons to believe that Musk is running low on liquidity. If Musk took any margin debt at all when TSLA was above $200, that's at risk of margin calls. Published reports say Musk is among the most prolific margin borrowers, with a very high percentage of TSLA shares pledged to margin debt. On top of that, Tesla's board is at risk of a shareholder suit if it does not enforce its own margin debt policy for board members and top management. Elon's brother is also a big margin borrower, and is subject to a 25% limit.

freejazz 4y ago

>Probably trying to game the litigation cycle and pay at the very last minute? What is statutory interest in SF?