Is Elon Musk in Trouble?

[TX-Beau]

If this is some more of Melon Musk's bullshit antics and not some kind of glitch or accident, he's fucking around with the wrong people
...people who are currently in a war.

https://twitter.com/x/status/1602641892264611840

It's quite possible it's a fuck up stemming from the lack of people to run Twitter. Of course, he's a puerile, nausea-inducing, whiny toddler man, so it also could be petty douchebaggery.

 

[TX-Beau]

You must not create the suspicion that there are more. No one will thank you.

 

[johaninsc]

 

[fabulouslyghetto]

I've learned his business style. Fire everybody, don't pay anyone and crush them in court.

 

[TX-Beau]

...The bankers for Musk are reportedly evaluating whether to replace some of the high-interest debt he burdened onto Twitter with a new set of margin loans backed by Tesla stock that he would be responsible for paying back personally, according to Bloomberg News...

Elon Musk Loses More Money Than Gates and Bezos

Uh oh, the banks smell a bankruptcy.

 

[rareboy]

From the very beginning....there was no way to make the business case for this and the worse it gets, the more Gonzo he is going to become.

While I suspect that Twitter was awash with a lot of people who literally didn't do anything but sit in meetings to plan the next meeting, eventually he is creating gaps that everything will just fall into as the whole thing collapses.

He will eventually be running the whole thing himself from a server in his bedroom...pretty much like Truth Social.

 

[rareboy]

From Lindy Li:

Remember the $5.7 billion in Tesla stock that Elon Musk gave to charity last year?
And the amount of praise and ass-kissing he got for it?
Well, turns out the money went to his OWN organization!
Now who does that remind you of? *cough* Trump *cough*

And of course, now it is worth a lot less.

 

[rareboy]

At what point will Tesla's board decide that he is a liability for the shareholders. BTW, with today's slide, he is no longer richest man in the world. And there are analysts out there who are now talking about $50 per share being a more reasonable valuation.

 

[TX-Beau]

The board at Tesla is in breach of their fiduciary duty. The lawsuits are coming. They can be sued for the entire amount of the loss if it can be demonstrated that they knew Elon was negatively impacted the stock value and did nothing. They can be criminally prosecuted if they actively participated.

 

[rareboy]

The problem is that Musk and Tesla's board think they are riding a unicorn...untouchable and able to magically escape any reality unscathed. But I just don't understand why there isn't a shareholder revolt, other than all the people selling rather than buying.

 

[TX-Beau]

The problem is that Musk and Tesla's board think they are riding a unicorn...untouchable and able to magically escape any reality unscathed. But I just don't understand why there isn't a shareholder revolt, other than all the people selling rather than buying.

I haven't posted the articles but there is a shareholder revolt. It's just a couple of months in though and any legal remedy is going to take time. It always does. Lawsuits to recoup lost value could take years to settle. The lawyers for some of the bigger shareholders are going after Elon and the board as far as I can tell, but they're just building their arguments at this point.

The longer the BoD takes to can Elon, the more liability they're going to incur, which is what surprises me. If the stupidity of the whole Twitter acquisition fiasco wasn't enough to trigger them, the hate speech and toddler tantrums certainly should have. At some point, they will cross the line into criminally liable.

 

[TX-Beau]

If you look up-thread, Elon's bankers are going to shift the debt from Twitter to Elon personally, which can only mean they think Twitter will be bankrupt fairly soon.

They'll at the very least require Tesla stock to guarantee the debt.

 

[johaninsc]

he has a serious problem with his mental wiring

 

[cityboy-stl]

^ That's really weird. He is sounding psychotic or like he is on drugs.

 

[rareboy]

He is a major stoner. What he thinks is brilliance is just pot induced delusions and paranoia.

 

[TX-Beau]

Elon just sold three billion and change in Tesla stock. That did not go over well.

...“Self-inflicted issues” from Musk around Twitter continue to plague the Tesla story and investor frustration continues to build, he said. “Another Tesla stock sale fuels the black cloud around the story,” Ives added. Buyback, Need Of The Hour: Gerber Kawasaki Wealth and Investment Management’s Ross Gerber called upon Tesla’s board to immediately announce a buyback to stop the dilution stemming from the CEO’s stock sale...

Elon Musk's 'Self-Inflicted Issues' Hurting Tesla: Analyst Says EV Maker's Board Needs To Do This Immediately To Control Damage After CEO's Latest Stock Sale

...Meanwhile, Tesla’s stock hit a two-year low. The electric automaker’s share price has now fallen more than 50% in the past 12 months, as investors’ concerns about Musk’s commitment to the company keep increasing. Tony Sycamore, an analyst at brokerage IG Markets, told Reuters that the latest sale “doesn’t put a lot of confidence in the business, or speak volumes for where his [Musk’s] attention is at...”

With his latest $3.6 billion Tesla stock sale, Musk once again sells loyalist investors short for the sake of Twitter

The speculation is either that Tesla's numbers are going to stink, or that Elon is trying to get out from under high-interest Twitter debt. Either way, Tesla stockholders pay. It's share value dropped again. It' 's down by fifty percent this year.

Then there is this:

Twitter must tell terminated employees that there’s an active lawsuit against the Elon Musk-led company regarding severance pay and benefits, a judge reportedly ruled...The social media platform has reportedly been asking employees who accept the severance package, which includes a month of base pay, to sign a waiver agreeing not to join lawsuits against it...

Elon Musk's Twitter Ordered By Judge To Inform Sacked Workers About Severance Lawsuit

If I'm reading that right, Elon is telling his surprisingly fired ex-employees that they can have a little now, if the agree not to ask for everything owed, and was attempting to lie to people about it.

 

[TX-Beau]

Back at the ranch:

...Ives said that there’s uncertainty for Tesla investors about when the Twitter distraction will end, given that it’s “managed to change the narrative of Tesla from the fundamental EV transformation story to a ‘source of funds’ funding the Twitter turnaround...”

MSN

The haterade coming out of Twitterlon has all the cowpokes wanting his head.

...The Wall Street Journal recently detailed concern on the part of Tesla investors over who is actually running the electric-vehicle maker during this time...


...and asking just who the fucking is driving this car. I suspect they are very afraid Tesla is on Autopilot and is going to have a head-on collision with Elon's ego.

 

[TX-Beau]

And now for some good old-fashioned securities fraud.

The SEC charged seven “social media influencers” — who had amassed hundreds of thousands of followers on Twitter and some other website — with securities fraud, alleging they manipulated stock prices to reap at least $100 million in ill-gotten gains... seven of the defendants promoted themselves as “successful traders,” allegedly having purchased certain stocks and then encouraging their “substantial social media following” to buy the stocks... In fact, however, when share prices and/or trading volumes rose in the securities they were hyping, the individuals “regularly sold their shares without ever having disclosed their plans to dump the securities while they were promoting them...”

https://www.msn.com/en-us/music/new...sedgntp&cvid=807f6792df644158be0ed63ac42594d5

Incidentally, this is what Elon was attempting, that got him roped into buying Twitter in the first place.

 

[rareboy]

And I am still not convinced that there isn't this actually going on with him crashing TESLA stock to in some way, buy back when it hits 55 bucks...even the 3.6 billion he sold today are shares that he likely paid almost nothing or absolutely nothing for.

 

[TX-Beau]

It's certainly possible, maybe he is just deluded enough to believe that the SEC would not be all over that in a heartbeat. He's already under investigation for the games he played with Twitter.