Buying Twitter was the biggest gamble of Musk's career. Now he — and his empire — are cracking under the pressure.

This is why using Tesla stock to source cash all the time gets hairy. If Tesla shares fall below a certain level, the banks can call in those personal loans — leaving Musk on the hook. And the quickest way for Tesla’s stock to drop off a cliff is for investors to get wind of a big Musk sale. And of course, he needs to make sure that he still holds on to all the Tesla stock he’s pledged as collateral to the banks. Unfortunately, though, the easiest way for Musk to fill the gaping hole in Twitter’s balance sheet is to sell Tesla shares. You see how this could be a problem.

  • Pons_Aelius@kbin.social
    112·
    1 year ago

    If Twitter goes insolvent he looses all of his money he has invested in Twitter

    He has also lost the money other people invested with him, like the Saudi Royal family.

    Money comes and money goes but bone saws are forever…

      • Pons_Aelius@kbin.social
        61·
        1 year ago

        Exactly. Money for influence, except without twitter there is no influence or money and the Saudis are used to getting what they paid for.

        • Endorkend@kbin.social
          4·
          1 year ago

          Then they still got rid of a bad influence.

          For them, Twitter dying, leaving the far right Twitter clones to do their thing or Twitter turning into what Elon was trying to turn it into is both an agreeable outcome.

          • joneskind@lemmy.world
            21·
            1 year ago

            The “far right Twitter clones” are nowhere the influence Twitter had and none of it is sustainable because of brand safety concerns. Threads and Bluesky are solid contenders already to get Twitter’s level of influence. Twitter’s killing was absolutely pointless, like cutting a head of the hydra. Once it died, people who made Twitter’s influence will move to another platform. End of story.