Yea, I briefly thought 'oh no what if Musk loses control over Tesla due to a margin call'. Then I thought about how many stock price levers they have to push it up if needed. Worries abated quickly.If MMS want to try to entice this scenario
… it’s only fair for Tesla to provide some product updates
Also A CT update should take some wind out of the F 150 - time to remind market on the tug of war and who the tough guy really is
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
Meh. He can post more shares as collateral and he has lots of it. I think around 170 million shares.
The bigger outstanding question is how he is gonna raise the 16 odd billion in equity that's still needed to close the transaction.
1. Let existing Twitter share holders roll their holdings into a private Twitter
2. 4 billion of cash on Twitter balance sheet that's his to use at closing
3. Issue X company subordinate debt, that others can buy. Remember SpaceX had in the past bought scty bonds
4. Private equity funds who can go in with him. Thoma bravo was rumored. A lot of serial VCs who backed him like DFJ etc may be interested, but typically they write smaller checks. He did work with silver lake in the past.
5. Hit up his buddies like Ellison or Branson
6. Sell some Tsla
7. A bit of all or some of the above
He has too many options. I am in the camp that he sold some TSLA today and from his perspective, showing a bit of that cash will give him better leverage with the other options. He probably has a good sense of the split.
Feels like the hedge funds see vulnerability with this margin loan, or at least a chance to make it more expensive for Elon to pay for Twitter. Maybe some shorts who got wrecked in the past few years are trying to get some revenge today.
Does it make sense for Elon to sell stock at the same time he’s using it to secure a margin loan? Hoping we see a funding plan with partners soon and not one of those forms he has to file within 48 hours of selling.
Does it make sense for Elon to sell stock at the same time he’s using it to secure a margin loan? Hoping we see a funding plan with partners soon and not one of those forms he has to file within 48 hours of selling.
Can someone please tell me if TSLA is going to be positive tomorrow….asking for a friend…
bkp_duke
Well-Known Member
Been watching SEC filings here:
Nothing reported so far, but I believe he has up to 48 hours to report after the sale.
Do people think there are a lot of existing twitter shareholders willing to go private with Elon? I don't know if there's a massive ..lets just say unreasonable fan base for twitter. Tesla shareholders are willing to go to zero with Elon, and will throw money at spaceX no matter the valuation. I don't think Twitter shareholders having similar passion Twitter.
Sadly there is another in Vanity Fair today, consisting mostly of links to other hit pieces, as you say mostly misleading, half-truths, missing context.
Maybe....could go up or could go down...that is all we can tell your friend.
EVNow
Well-Known Member
Yes - thats my take as well. He sold some shares.
Though its also possible, some big fish bailed out because they think the SP will go down if/when Musk sells stock.
From punchline to deal in under 2 weeks: how Elon Musk won his Twitter prize
Tesla boss convinced Wall Street sceptics to back his $44bn takeover offer
t.co
“Ready to sell shares if needed”
Jack is certainly going to go with Elon. That's a billion and change there. Current large Twitter owners may not be 'till death do us part' type, but I can say that some are truly excited for the direction of Twitter, and share Jack's vision.
Who knows, maybe this simulation all turns into a perpetual 420.
EVNow
Well-Known Member
Ellison may like the idea .... afterall he has been a GOP supporter (who apparently feel they have been silenced by current Twitter) - though not sure he supports the Trump wing of GOP.
To me more likely he will get some not very well-known names to put in money. Might even be Morgan Stanley and others arranging the money. Remember overnight they could arrange Billions in loans etc for Tesla.
Bet TSLA
Active Member
Looks like ARK wasn't selling TSLA today.
I wouldn't really take anything online as much of anything. There's no accountability so any outlet can say what they want and claim sources.From punchline to deal in under 2 weeks: how Elon Musk won his Twitter prize
Tesla boss convinced Wall Street sceptics to back his $44bn takeover offer
“Ready to sell shares if needed”
View attachment 797926
We'll find out in under 48 hours if Elon was selling today. If he did, I'll probably sell my OTM LEAPS and ITM LEAPS I have and buy outright stock with the proceeds. I'm not mad at Elon, but simply can't trust him when dealing with leverage at this point. Two stock sell events in the matter of 5 months. First, it was a very logical one to exercise his options, but one he just did it an a extremely painful way for shareholders and to then sell shares to buy Twitter......yeah can't really hold him to the "I'll be last out" line anymore haha.
I'll be perfectly content to just hold shares.
I’d laugh but the tears from all my crying wouldn’t let me.
BriansTesla
Old school meets new tech
Bought chairs three times today, the last 50 at $864.20 after hours. Now I'm well over 100% in Tesla.
Happy, Not worried.
Happy, Not worried.
I see the hot topic on here today is whether Elon is/was/will be selling $TSLA to fund $TWTR. Just a reminder that all it means is a different person ends up owning those shares. The effect on Tesla the company? - none whatsoever.
Whatever the reason for today's drop, my only interest is that I was able to add 40 more shares at prices I didn't expect to see again. As for Elon selling or not, I'm unconcerned because any effect is short term, and that's not why I'm invested in Tesla.
Today was my 2nd biggest ever one day dollar loss and yet I regard it as a good day because I now own 40 more shares in this outstanding company. As I've said before, we know how this ends.
Whatever the reason for today's drop, my only interest is that I was able to add 40 more shares at prices I didn't expect to see again. As for Elon selling or not, I'm unconcerned because any effect is short term, and that's not why I'm invested in Tesla.
Today was my 2nd biggest ever one day dollar loss and yet I regard it as a good day because I now own 40 more shares in this outstanding company. As I've said before, we know how this ends.
Right. They raised a quarter point. Not significant. Should have started raising on a quarter point basis much sooner.
They have just begun to clear their balance sheet, which Is at about nine trillion.
Recent balance sheet trends
The Federal Reserve Board of Governors in Washington DC.
www.federalreserve.gov
The triple whammy of raising interest rates, unwinding the balance sheet, and the price of fossils threatens to swamp the economy in a hurry. The chances of successfully raising interest rates to where the markets consider neutral (3%?) without a recession seem slim to me. The market agrees. Perhaps you noticed the market action lately? The Fed has a mandate for sure, but what it involves is up for debate.
Not even sure what your point is to be honest, unless you wanted to imply that I did not know about last month’s rate hike.
bkp_duke
Well-Known Member
Right. They raised a quarter point. Not significant. Should have started raising on a quarter point basis much sooner.
They have just begun to clear their balance sheet, which Is at about nine trillion.
Recent balance sheet trends
The Federal Reserve Board of Governors in Washington DC.www.federalreserve.gov
The triple whammy of raising interest rates, unwinding the balance sheet, and the price of fossils threatens to swamp the economy in a hurry. The chances of successfully raising interest rates to where the markets consider neutral (3%?) without a recession seem slim to me. The market agrees. Perhaps you noticed the market action lately? The Fed has a mandate for sure, but what it involves is up for debate.
Not even sure what your point is to be honest, unless you wanted to imply that I did not know about last month’s rate hike.
Agreed. If the Fed had any sense of being in touch with the markets, they would hold on asset sales at least until they finish their interest rate raises. Pushing asset sales at the same time as interest rates during the backdrop of surging energy prices, that's a recipe for a recession, and possibly stagflation if the job market doesn't hold up (and believe me, as an employer, I'm seeing where I can "trim the fat" due to rising costs).
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