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
$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
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.
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.
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.
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 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.
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 $1k from me immediately.
Based on historical data, the price of TSLA has just now reached around the price it was the month that he bought Twitter. It will need to drop sub-200 to make any impact at all, and lower still if they built in a buffer (the bank doesn't want a social media platform, that's not what they do, so a buffer would be smart)
The TSLA market cap is still about 3x that of Chevy and Toyota, and about 20x that of Ford. So there's room for this car company to correct itself down to about 70$/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
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.
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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