Subj : Re: Funny what you don't see
To   : Mike Powell
From : Kurt Weiske
Date : Mon Mar 31 2025 06:47:39

-=> Mike Powell wrote to KURT WEISKE <=-

 MP> It does sound fishy, and like bad business, but I am not seeing the
 MP> connection between buying X/Twitter outright and preventing the chance
 MP> of a Tesla margin call.  How does Musk buying X/Twitter solve Tesla's
 MP> woes?

It solves Musk's woes. If Tesla stock had dropped too much lower, the
bankers who financed the X deal could have done a margin call - told
Musk he needed to provide more collateral because the original
collateral's value had dropped too low.

Doesn't help Tesla, specifically. I'd be curious if I was an xAI
investor and saw a significant part of our company stock go to buying X.

But, this way, Musk can pay off the loans for X with funding that xAI
was provided, taking the dependency on the Tesla stock price. Maybe now
he'll get out of Tesla, since he can dump his stock without concern for
the price? Naw, he doesn't need the money now.





 
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