Why is Tesla’s stock price so important to Musk?

[Anonymous]

I don’t recall an entrepreneur so obsessed with their stock price that they would ask POTUS to hold a sales rally on the lawn of the WH or the Commerce Secretary to shill on Fox. What’s going on? After all, doesn’t Musk have a zillion dollars? If so, why is he concerned about several 10s of billions? Turns out, there’s a bunch of reasons:

1) Musk has used Tesla stock to get loans for his lifestyle and many of his other companies. As the stock price falls, the stock collateral could become insufficient to support the loans, requiring the loans to be called or Musk to provide more capital.

2) Musk is paid in equity by Tesla. However, to unlock that equity, he must meet various metrics, one potentially being a certain level of stock performance.

3) If Tesla wants to heavily invest in new technologies or expand work in existing ones, it might need more capital. The higher the stock price, the more efficiently it can raise capital without diluting existing shareholders.

4) Then there’s the grab bag of issues, like Musk’s identity/ego, morale/retention of workers, etc.

In sum, Musk must be pretty desperate to trot out high profile pitchman for his stock. Heck, he even held a town hall where he told employees to hold their stock.

Is it just me or are others sensing that Musk might be on the cusp of genuine financial trouble - maybe a house of cards? Is selling his stock the ultimate form of protest?

[Anonymous]

You apparently haven't met ANY entrepreneurs who own companies.

[Anonymous]

Anonymous wrote:You apparently haven't met ANY entrepreneurs who own companies.

DP... I've met tons of billionaires, entrepreneurs and business owners. In fact I had business dealings involving NYC area land development projects with Trump in the 1990s (and he was not a good person to work with even back then). But never in my live have I encountered one as astonishingly and unabashedly sociopathic, ethics compromised and corrupt as Elon Musk.

[Anonymous]

Word is if it get before $144 he has to sell everything to cover twitter. In other words he would be broke.

[Anonymous]

Anonymous wrote:Word is if it get before $144 he has to sell everything to cover twitter. In other words he would be broke.

Wow! Any link/source for that?

[Anonymous]

I don’t really think it is, but it is keeping us peons looking in the other direction while social security is under attack.

[Anonymous]

People keep saying different reasons why Elon’s going to owe a lot on Twitter “very soon” but nothing ever comes of it.

[Anonymous]

Anonymous wrote:I don’t recall an entrepreneur so obsessed with their stock price that they would ask POTUS to hold a sales rally on the lawn of the WH or the Commerce Secretary to shill on Fox. What’s going on? After all, doesn’t Musk have a zillion dollars? If so, why is he concerned about several 10s of billions? Turns out, there’s a bunch of reasons:

1) Musk has used Tesla stock to get loans for his lifestyle and many of his other companies. As the stock price falls, the stock collateral could become insufficient to support the loans, requiring the loans to be called or Musk to provide more capital.

2) Musk is paid in equity by Tesla. However, to unlock that equity, he must meet various metrics, one potentially being a certain level of stock performance.

3) If Tesla wants to heavily invest in new technologies or expand work in existing ones, it might need more capital. The higher the stock price, the more efficiently it can raise capital without diluting existing shareholders.

4) Then there’s the grab bag of issues, like Musk’s identity/ego, morale/retention of workers, etc.

In sum, Musk must be pretty desperate to trot out high profile pitchman for his stock. Heck, he even held a town hall where he told employees to hold their stock.

Is it just me or are others sensing that Musk might be on the cusp of genuine financial trouble - maybe a house of cards? Is selling his stock the ultimate form of protest?

It’s just you

[Anonymous]

Isn't all this just saying he's for sale? I thought there was already talk of the Twitter debt being re-negotiated in ways that make no sense for the banks. Can't some deep pockets prop him up? Isn't that the real advertisement, pitching his proximity to power?

It does seem like a house of cards. He's ruining the brand image. The Tesla driver deaths are higher than any other brand, and they're trying to cook the books on safety. There's the 1.4B unaccounted for. No way they'll have robot on the market anytime soon, that's conman talk. Surely the employees know the most of all.

[Anonymous]

Don’t worry-taxpayer money will bail him out.

[Anonymous]

I don’t recall any entrepreneur playing president before, but here we are.

[Anonymous]

Anonymous wrote:Don’t worry-taxpayer money will bail him out.

It’s already subsidized by protecting the electric car 100% import tariff on electric car imports.

[Anonymous]

If the above is true WRT it being part of his house of cards, those Ponzi Scheme comments about Social Security look a lot more like projection than just psycho comments.

[Anonymous]

It’s the only thing he has that was actually producing income. He owes a lot of money and has loan payments that are astronomical. He desperately needs the income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Word is if it get before $144 he has to sell everything to cover twitter. In other words he would be broke.

Wow! Any link/source for that?

Let’s do the experiment. make it happen and see