Now he’s driving their investment into to the ground so the banks will end up writing off most of the debt rather than asking for repayment. So far, it seems to be working.
Maybe I’m financially illiterate, but I don’t understand how that works. Like… if I take out a loan to buy a house and then deliberately burn down the house, that doesn’t get me off the hook. If anything, I’ll probably end up going to prison to boot. Why exactly would the banks just write off Musk’s debt instead of going after him and his other assets in court?
Lenders are not as stupid as you think. 75% of Twitter’s purchase price was paid by Musk himself or loans secured against his Tesla stock. None of that will be “written off”.
Tesla owns a huge and successful charging network, and most EV makers in the US are switching to Tesla charging ports in order to take advantage of it. In the process, this will make the smaller charging networks (like EA) even more irrelevant.
If Ford happened to own all the gas stations in America, you’d have an idea of what Tesla is about to become. There’s a good reason why Tesla stock is priced so high.
Ford never dominated the US market for gas stations like Tesla does for chargers. Even if Tesla never builds another charger outside the US, it can thrive by dominating the US market alone. And the experience of EA and others demonstrates that it’s not so easy to set up a competing network.
Of course Tesla might spin off its charging business, but that won’t worry investors. It just means that your Tesla share would turn into a share of TeslaCars plus a share if TeslaChargers.
I hope the cash he got from banks is backed by his stocks in Tesla. But what do I know, look what happened to Silicon Valley Bank. Banks aren’t smarter in investing than the rest of us apparently.
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Maybe I’m financially illiterate, but I don’t understand how that works. Like… if I take out a loan to buy a house and then deliberately burn down the house, that doesn’t get me off the hook. If anything, I’ll probably end up going to prison to boot. Why exactly would the banks just write off Musk’s debt instead of going after him and his other assets in court?
Because laws are for poor people silly goose
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Wait, huh? So anyone can just print money by investing it? Or is it hypothetical money tied to the value of something?
Lenders are not as stupid as you think. 75% of Twitter’s purchase price was paid by Musk himself or loans secured against his Tesla stock. None of that will be “written off”.
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Tesla owns a huge and successful charging network, and most EV makers in the US are switching to Tesla charging ports in order to take advantage of it. In the process, this will make the smaller charging networks (like EA) even more irrelevant.
If Ford happened to own all the gas stations in America, you’d have an idea of what Tesla is about to become. There’s a good reason why Tesla stock is priced so high.
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Ford never dominated the US market for gas stations like Tesla does for chargers. Even if Tesla never builds another charger outside the US, it can thrive by dominating the US market alone. And the experience of EA and others demonstrates that it’s not so easy to set up a competing network.
Of course Tesla might spin off its charging business, but that won’t worry investors. It just means that your Tesla share would turn into a share of TeslaCars plus a share if TeslaChargers.
I hope the cash he got from banks is backed by his stocks in Tesla. But what do I know, look what happened to Silicon Valley Bank. Banks aren’t smarter in investing than the rest of us apparently.