Frankly, if the banks call in his debts and he’s essentially forced to divest enough shares that he has to give up controlling interest in one or more of his other companies… it may be genuinely better in the long-term for those companies.
this post was submitted on 15 Dec 2023
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Enough Musk Spam
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Lol and if Elon Musk says it, you can take it to the bank, where it will then lose a bunch of its value
Elon Musk lies about a lot of things.
I don’t care whether we’re talking about Musk or anyone else - any bank that lends money while taking into account the “personal guarantee” of the borrower has only themselves to blame for any losses.
OF COURSE a potential borrower is going to make lending sound like a good idea. The borrower is as biased and impartial as possible. If anything, these banks deserve to get bit in the ass for being blinded by greed. Maybe the people who approved the loans shouldn’t have that authority.
Considering Elon Musk is a known pathological liar, you'd have to be extremely stupid to trust anything he says.
it turns out he's really determined to destroy Twitter: lying to banks it's a big no no for one like him.
otherwise he's that kind of person many think he is.
Lying to banks is exactly the thing that may get Trump finally convicted.
Yep. Don't fuck with our owners.
That was Bernie Madoff's mistake.
Weird. And here I was thinking that Madoff's mistake was running a huge Ponzi scheme.
The mistake was who he targeted with said scheme, ripping off market investors on a broad scale and not just tricking foolish commoners out of their pension cheques.
Most of these schemes are never publicized and barely punished white collar crimes, or actively ignored as MLM pyramid schemes are. Madoff made the mistake of going way, way too big and thinking he could get away with it.
And Market Capitalism the largest pyramid scheme of all time, whats your point?
https://ryangosha.medium.com/capitalism-is-a-pyramid-scheme-769cc882f6
You're a sucker if you rely on Elon Musk telling the truth.
Kinda stupid not to put an exit clause on the contract, instead of relying on his word. Ohh well, I am sure they will be fine!
Isn't it illegal to guarantee returns?
For stock, maybe. On bonds, no. Oh course, he probably still had to put up collateral.
It's freedom of speech.../s
That was one of his defenses when he was fucking with the stock market, before he was forced to buy twitter.
Why would the banks sell the debt? That asshole has the money to make the payments. If he doesn’t, they should start taking his collateral.
Did he put anything up as collateral? They can't just take stuff at random, can they?
He put up shares of Tesla as collateral. https://www.washingtonpost.com/technology/2022/04/22/musk-twitter-financing-tesla/
These 13 billions were not loaned to Musk but to Twitter. So Musk has no obligation to personally honor those loans. The bank bought the story sold by Musk that he could make Twitter so profitable that the company could repay these loans.
https://www.aljazeera.com/economy/2022/10/28/how-elon-musk-financed-his-twitter-takeover
They loaned Twitter the funds to buy itself? The more I see the bigger this scam seems.
A perfectly common practice: https://en.m.wikipedia.org/wiki/Leveraged_buyout
The buyer is not supposed to kill the value of the company this quickly though.
Can they seize Twitter and sell it to someone else?
It'd be in the banks' best interest to not sell the debt then, right? Unless they think they can get more for it than the shares are worth.
This is will beyond my knowledge. I imagine if they seized his shares that would have a huge negative impact on TSLA stock price, potentially making them worth less that they could have sold the debt for. I think if he doesn't pay, the banks are in for hurt no matter what.
That's a good point, it's strange they accepted shares as collateral at all then if just claiming them can cause them to tank in value.
Hahahahahahahahahahaha
Who would even buy this debt if they wanted to sell? There’s no sign of the situation improving.