this post was submitted on 10 Mar 2025
1098 points (98.8% liked)
Technology
66067 readers
4818 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each other!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, this includes using AI responses and summaries. To ask if your bot can be added please contact a mod.
- Check for duplicates before posting, duplicates may be removed
- Accounts 7 days and younger will have their posts automatically removed.
Approved Bots
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Something that isn’t reported enough is that Elon borrowed heavily against his ownership of Tesla to buy Twitter. It is thought that at around $100 a share he will be margin called which will mean that Elon will have to pay the loan back in cash immediately which will bankrupt him completely and enact the rage of his handlers the Saudis and Putin as they are the ones who drummed up support for the deal in the first place by holding a majority of the non-institutional debt.
Sorry to be that guy but can you give any sources for this? I would love this to be true and want to tell my friends but yeah a source would be nice...
I want to believe...
Russia does not give a single fuck about their assets getting burned. It happens all the time. It's part of their playbook to make their assets more and more bold.
They got more than their moneys worth in the form of the US crashing and burning like it is now.
This sounds really interesting but I lack the necessary economics background to understand it. Instead of having to research for potentially hours, do you mind please dumbing it down a little for me? The parts I don't understand are "borrow against an ownership", "holding non-institutional debt". You don't have to of course
The same way your mortgage is backed up by your house. If you default on your mortgage, the bank can take your house in foreclosure.
Rather than sell shares to raise the money, Musk has backed his borrowing with Tesla shares. Basically, if he doesn't pay back the loan, the banks get the shares. Unlike houses, shares can change value quite quickly. If the value of the loan exceeds the value of the shares, then the banks start to get VERY nervous. They will call in the loans to get what they can, before things get worse. This could crash the share price further, since they will want to offload the shares as soon as possible.
Musk is extremely rich. However, like most extremely rick people, his money is tied up in shares. If Tesla falls fast enough, he could end up owing more than he has in assets. As soon as his creditors pull the plug, he becomes bankrupt.
Yes please
I really doubt that somebody will margin call one of the most powerful men in the world who is in control of the president of the United States.
That hinges entirely on whomever holds the loan.
If it was one person, then no way. But it's not just 1 person, it's more than 100.
https://www.msn.com/en-us/money/companies/these-are-the-investors-who-helped-elon-musk-acquire-twitter-in-2022/ar-AA1pguJS
There are investment groups in that list, and ties to the Saudis and Russians.
The investment groups might be legally required to margin call if the stock price falls too far, but none of them will hold the full loan.
Normally I would agree with you but with how hard the current US administration is pushing Tesla sales I think they are legitimately concerned / there is an actual chance this could happen: https://www.nbcnews.com/tech/elon-musk/trump-musk-tesla-white-house-showroom-buys-car-rcna195905