Elon Musk’s financial woes at X have Tesla bulls fearing he will liquidate more stock
Elon Musk’s financial headaches at X may be catching up to him—and Tesla bulls are worrying that could spell bad news for the carmaker’s investors.
Musk’s repeated outbursts against advertisers have dried up the main source of revenue for the loss-making company formerly known as Twitter. A recent decision to sue them for heeding his own advice to not buy ads on the platform hasn’t helped. At some point, he will have to provide a fresh infusion of cash to salvage his $44 billion takeover. And that might mean Musk sells Tesla stock to raise the money—hurting anyone who holds the carmaker’s shares.
This alone could cause the Tesla stock to lose between 5% and 10% of its value.
The last publicly available figures prior to Musk’s acquisition, from Q2 of 2022, had revenue at $661 million. After you account for inflation, revenue has actually collapsed by 84%, in today’s dollars.
No one knows how much longer X can survive, since the company doesn’t release financial results. But in November, Musk himself admitted X could face bankruptcy due to the advertiser boycott.
The problem for Musk is that while he may be the wealthiest man alive, he cannot simply plug financial holes in X using his own personal fortune, estimated at over $236 billion by Forbes.
That’s because it is almost exclusively tied up in his various corporate holdings that include everything from rocket builder SpaceX and brain chip company Neuralink to his latest startup, xAI.
None of these investments are easily fungible. Only Tesla is a publicly traded company. So the easiest solution at his fingertips is to liquidate a portion of his remaining 12% stake.
Continually dumping Tesla shares onto an unsuspecting market, resulting in the stock plumbing two-year lows, is after all how Musk financed the bulk of Twitter’s $44 billion price tag in the first place.
https://archive.ph/wqOhL
Elon Musk’s financial headaches at X may be catching up to him—and Tesla bulls are worrying that could spell bad news for the carmaker’s investors.
Musk’s repeated outbursts against advertisers have dried up the main source of revenue for the loss-making company formerly known as Twitter. A recent decision to sue them for heeding his own advice to not buy ads on the platform hasn’t helped. At some point, he will have to provide a fresh infusion of cash to salvage his $44 billion takeover. And that might mean Musk sells Tesla stock to raise the money—hurting anyone who holds the carmaker’s shares.
This alone could cause the Tesla stock to lose between 5% and 10% of its value.
The last publicly available figures prior to Musk’s acquisition, from Q2 of 2022, had revenue at $661 million. After you account for inflation, revenue has actually collapsed by 84%, in today’s dollars.
No one knows how much longer X can survive, since the company doesn’t release financial results. But in November, Musk himself admitted X could face bankruptcy due to the advertiser boycott.
The problem for Musk is that while he may be the wealthiest man alive, he cannot simply plug financial holes in X using his own personal fortune, estimated at over $236 billion by Forbes.
That’s because it is almost exclusively tied up in his various corporate holdings that include everything from rocket builder SpaceX and brain chip company Neuralink to his latest startup, xAI.
None of these investments are easily fungible. Only Tesla is a publicly traded company. So the easiest solution at his fingertips is to liquidate a portion of his remaining 12% stake.
Continually dumping Tesla shares onto an unsuspecting market, resulting in the stock plumbing two-year lows, is after all how Musk financed the bulk of Twitter’s $44 billion price tag in the first place.
https://archive.ph/wqOhL
teachings of the Bible are so muddled and self-contradictory that it was possible for Christians to happily burn heretics alive for five long centuries. It was even possible for the most venerated patriarchs of the Church, like St. Augustine and St. Thomas Aquinas, to conclude that heretics should be tortured (Augustine) or killed outright (Aquinas). Martin Luther and John Calvin advocated the wholesale murder of heretics, apostates, Jews, and witches. - Sam Harris, "Letter To A Christian Nation"
