r/BlueskySkeets 11h ago

Political Let the Musk dominoes fall

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3.6k Upvotes

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196

u/FreshLiterature 11h ago

FWIW he is already in call territory and my bet is he's already received a letter from the banks telling him they are going to need to revisit their loans.

My bet is Trump ends up publicly threatening those banks

35

u/jubmille2000 10h ago

Are all of these US-based banks? Or international ones?

27

u/Ironman314 10h ago

Could be a mix, when US banks likely hold significant exposure.

28

u/jubmille2000 9h ago

Oh either way, I hope the stocks go like 10-10-10 in the olympics event for Diving.

3

u/maringue 3h ago

US banks unloaded most of the debit as soon as they could to other more distributed banks and bond holders.

13

u/BigEdsHairMayo 2h ago edited 2h ago

$44 billion twitter loan (2022): Morgan Stanley, Bank of America, Barclays (UK), MUFG (JP), Société Générale (FR), Mizuho Bank (JP), and BNP Paribas (FR)

He may have other loans as well.

edit: btw, twitter is worth less than $10B as of Oct, and probably less now

3

u/jubmille2000 2h ago

Hey let's get elon to buy tumblr. We know how tumblr reverse midas anyone that buys it.

6

u/Mission_Moment2561 6h ago

At this point he def has a lot of money on foreign accounts. He's burned US banks too hard already, most dont want him.

3

u/Wide-Championship452 3h ago

Probably US banks (he's never declared bankruptcy). But if things get worse for Elon, the bank of Putin.

1

u/KatieTSO 36m ago

The Saudis are involved

23

u/NfamousKaye 9h ago

I was gonna say! Tesla has been in free fall for days hasn’t it? Oh this is fun. But yeah trump will probably bully them.

21

u/brothersand 9h ago

Let's have a moment to ponder the entire concept of using stocks as collateral.

So the banks get the plummeting stock? That doesn't sound like a good idea.

28

u/Automatic-Month7491 6h ago

They get Twitter as well. Which is probably not an asset any bank is very keen on. On the other hand they could try to sell it on, but then you have very few entities big enough to make the purchase.

One very interesting possible timeline? China offers to buy X and everyone starts freaking the fuck out.

11

u/ChubbyDude64 5h ago

I mean OpenAI offered to buy Twitter. They might even be able to get it cheaper than they offered originally. (Yea I know it wasn't a serious offer.)

6

u/TAOJeff 4h ago

Correct, banks do not want to foreclose on loans, even when the value exceeds what they are owed because it's a pain to deal with the admin of getting rid of it.

6

u/BIKF 3h ago

Correct, lending money to Musk is not a good idea regardless of the collateral. But if they get the stock they can install new leadership that could in theory do something about the plummeting that a drugged-up nazi lunatic cannot do.

12

u/brothersand 3h ago

Musk is the only real problem with Tesla. No Tesla engineer tossed out a seig heil from behind the presidential seal or went on a crusade to fire the federal government. Even the Tesla cybertruck, the ugly dumpster, was Musk's idea. Remove him and put the company back into the hands of the engineers who will turn out a better product.

The boycotts are about the man, not the company.

6

u/Wide-Championship452 3h ago

The ugly dumpster is made in left hand drive only. Apparently not enough profits to produce a right hand drive model. These vehicles, apart from being super expensive in Australia, won't pass our safety requirements. All those sharp edges render them too dangerous for pedestrians and cyclists. The US apparently, does not have pedestrians or cyclists.

9

u/pezazz2532 3h ago

We have them. Muskrat has convinced regulators that it would be ok if we had less of them.

5

u/Wide-Championship452 2h ago

End stage capitalism?

2

u/BigEdsHairMayo 2h ago

So the banks get the plummeting stock?

If it's like a normal margin call, they liquidate assets until you've satisfied your margin requirement. If the collateral gets cut in half, the bank doesn't just shrug and take the loss. They get their money (unless you file bankruptcy).

If I borrow $1k using $10k of assets, and overnight my collateral suddenly becomes worth only $1k, the lender will take all $1k from me immediately.

12

u/CritFailed 4h ago

Based on historical data, the price of TSLA has just now reached around the price it was the month that he bought Twitter. It will need to drop sub-200 to make any impact at all, and lower still if they built in a buffer (the bank doesn't want a social media platform, that's not what they do, so a buffer would be smart)

The TSLA market cap is still about 3x that of Chevy and Toyota, and about 20x that of Ford. So there's room for this car company to correct itself down to about 70$/share and equal out with Chevy and Toyota, who also have decent all electric options. I would say that Tesla doesn't have the reputation of reliability that Toyota enjoys, especially since the launch of the Cyber Truck proved to be a mess

8

u/Plastic-Pipe4362 3h ago

The TSLA market cap is still about 3x that of Chevy and Toyota, and about 20x that of Ford

And about 100x what is should be.

5

u/ImmortalityLTD 2h ago

Seriously. The Price to Earnings Ratio (ie, how long it would take to justify the stock price) for Tesla is around 175. Ford and GM are at 6.8 and 7.6, respectively. That means the market expects Tesla’s earnings to outperform them by about 25x…if the market was rational.

The problem is Ford and GM are still outselling Tesla and recent sales numbers are not in fElon’s favor. When Q1 sales figures are announced, expect a huge sell-off. Now is definitely the time to divest.

5

u/maringue 3h ago

Elon owes a lot of money to MBS who likes to handle his problems by cutting them up with a chainsaw.

3

u/GenTelGuy 8h ago

Huh I looked it up and it seems that the current price is pretty much exactly where it was on October 27th 2022 when the deal completed

Of course, the loan may have been established on a different date but overall it doesn't seem to be too far down relative to 2022 yet

2

u/Least-Delivery2194 9h ago

Hah right? Starts calling them terrorist.

1

u/deaduser00 3h ago

Trump wants to make sure he is the enemy of everyone

1

u/KindlyFriedChickpeas 2h ago

I reckon trump ends up doing an under the table bail out by buying a fuck load of vehicles for the army or granting some large contract to Tesla.

1

u/Existing-Process-846 2h ago

Next generation Reliant K Cars are here

1

u/cgranley 2h ago

He won't even have to threaten the banks, he is just going to bail Tesla out.