Musk's Twitter Purchase

[sidcow]

I stumbled across a Tesla forum earlier where Tesla owners were discussing if the way Musk was conducting himself would put them off buying another Tesla. 

Certainly some felt that way, most felt they had no option though as Tesla were simply the best electric car they could buy. Think they need to look a bit harder....... Or indeed at all. 

[Genie]

Is it likely the worlds richest man’s acquisition of Twitter could be so catastrophic he needs outside investment to keep it afloat?

I don’t know all the ins and outs but surely it can’t be that bad, can it?

[bickster]

3 minutes ago, Genie said:

Is it likely the worlds richest man’s acquisition of Twitter could be so catastrophic he needs outside investment to keep it afloat?

I don’t know all the ins and outs but surely it can’t be that bad, can it?

Right now there’s no way he’s the world richest man

[Genie]

4 minutes ago, bickster said:

Right now there’s no way he’s the world richest man

Forbes have him as second with $183b ($3b off the top spot). Even if allowing for a total loss on his $44b investment in Twitter  he’s insanely rich and would still remain 2nd richest person in the world (3rd richest person is worth $135b).

Edited December 11, 2022 by Genie

[ender4]

21 minutes ago, Genie said:

Forbes have him as second with $183b ($3b off the top spot). Even if allowing for a total loss on his $44b investment in Twitter  he’s insanely rich and would still remain 2nd richest person in the world (3rd richest person is worth $135b).

Is that purely based on Tesla?

[Genie]

1 minute ago, ender4 said:

Is that purely based on Tesla?

Quote

Musk recently sold off about $4 billion of Tesla stock to fund his $44 billion purchase of Twitter, which is embroiled with issues including layoffs and skittish advertisers wary of the platform's direction. Musk had sold blocks of Tesla shares worth a total of $15.4 billion earlier this year when his deal to buy Twitter was announced.

Estimating Musk's wealth in general is a difficult task, however, as much of his money is tied up in his private companies, including rocket and internet firm SpaceX, tunneling outfit The Boring Company, and Neuralink, which wants to put computer chips in people's brains.

Link

[Genie]

This is from April but gives a flavour of his wealth breakdown 

[Davkaus]

6 hours ago, ml1dch said:

He appears to be having a QAnon-inspired mental breakdown. 

 

Prosecute is being taken at face value by some, giving Fauci huge credit for Tesla's success.

It's incredible that the wealthiest man in the world is such a **** idiot.

[KentVillan]

5 hours ago, Genie said:

This is from April but gives a flavour of his wealth breakdown 

So that was in April.

Since April, TSLA has moved from 381 USD per share to 179 USD per share now. So halve all the TSLA stuff. And the other shares he owns are also in the frothy VC-funded innovation space, so similar mark down on all of that.

Then factor in that TWTR is a massive cash sink because of the inflated price he paid and the way it was financed (plus no doubt some massive lawsuits on the horizon, and no sign of him being able to generate profit in the near future).

The "richest man in the world" will still be very rich indeed, but he's evaporated an enormous chunk of his wealth in the space of a few months, and much of it can't easily be converted to cash because it will risk accelerating TSLA's stock price collapse.

It's a nasty spiral that could still get worse. Nobody's suggesting he ends up on the streets, but TWTR may well end up going bust to protect the rest of his empire from haemorrhaging money. That's when he goes out with his begging bowl to Saudi / China / etc I think. Just because he's rich doesn't mean he has any qualms about getting other people to bail him out.

(Edit: and yes TSLA prices take into account the stock split, so the pre-split prices are adjusted to reflect current split)

Edited December 12, 2022 by KentVillan

[KentVillan]

 

**** this silly man so much. Getting beyond a joke.

[Genie]

4 hours ago, KentVillan said:

So that was in April.

Since April, TSLA has moved from 381 USD per share to 179 USD per share now. So halve all the TSLA stuff. And the other shares he owns are also in the frothy VC-funded innovation space, so similar mark down on all of that.

Then factor in that TWTR is a massive cash sink because of the inflated price he paid and the way it was financed (plus no doubt some massive lawsuits on the horizon, and no sign of him being able to generate profit in the near future).

The "richest man in the world" will still be very rich indeed, but he's evaporated an enormous chunk of his wealth in the space of a few months, and much of it can't easily be converted to cash because it will risk accelerating TSLA's stock price collapse.

It's a nasty spiral that could still get worse. Nobody's suggesting he ends up on the streets, but TWTR may well end up going bust to protect the rest of his empire from haemorrhaging money. That's when he goes out with his begging bowl to Saudi / China / etc I think. Just because he's rich doesn't mean he has any qualms about getting other people to bail him out.

(Edit: and yes TSLA prices take into account the stock split, so the pre-split prices are adjusted to reflect current split)

The post above referring to Forbes is current (8th December 22) and takes into account share prices and product values. It has him 2nd richest person in the world with $183b net worth.

[KentVillan]

13 minutes ago, Genie said:

The post above referring to Forbes is current (8th December 22) and takes into account share prices and product values. It has him 2nd richest person in the world with $183b net worth.

Forbes is about as reliable as Football Insider

[Genie]

13 minutes ago, KentVillan said:

Forbes is about as reliable as Football Insider

What/Where is considered more reliable? 

[sidcow]

4 hours ago, KentVillan said:

 

**** this silly man so much. Getting beyond a joke.

Something has cracked inside him. 

Alcohol or drugs or mental health (maybe a combination) but he's absolutely broken. 

[Genie]

Just now, sidcow said:

Something has cracked inside him. 

Alcohol or drugs or mental health (maybe a combination) but he's absolutely broken. 

It does feel like a major mental crash is around the corner for him.

He needs a break, not to take on more and more.

[sidcow]

As an aside I hadn't even realised his pronoun comment was a knock at the LGBT Community. That's how out of touch I am. 

[KentVillan]

6 minutes ago, Genie said:

What/Where is considered more reliable? 

Nowhere unfortunately - net worth is very hard to calculate when so much of it is locked up in shares in private companies that are reliant on VC funding (how on earth do you value his stake in SpaceX, for example?), plus nobody really knows his debts/liabilities, which are probably enormous too.

The chunk we can be reasonably certain about is the TSLA stock, but the rest is all guesswork, and Forbes will always err on the side of whatever generates more clicks.

[Chindie]

He's extremely rich. Whether he's number 1 or not is neither here nor there. 

What he's not, on balance of the split of his assets, is liquid asset rich. He's evidently got a lot of cash, enough for anyone to live in extravagant luxury for the rest of their lives quite easily by most guesses. But that is dwarfed by the assets he has he can't just sell without having knock on effects. He's beholden to the stock exchange given so much of his wealth is in the shares he owns of companies, which means his wealth can be tanked quite easily. 

If Tesla goes pop he's no longer looking like a candidate for richest man on earth. And given Tesla is massively overvalued, his wealth is probably a bit of a mirage.

Either way buying Twitter was a ridiculously stupid move, and his paying so much for it is even more stupid. Not enough to ruin him but he's put a big weight on his wealth with it.

[Genie]

Spending $44b on an app that was losing about $1b a year is possibly the worst deal in history isn’t it?

[HKP90]

7 hours ago, KentVillan said:

 

**** this silly man so much. Getting beyond a joke.

Said without irony while forcing his opinion on millions of twitter users.