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  • Funny what you don't see on X.

    From Kurt Weiske@1:218/1 to All on Sat Mar 29 10:56:51 2025
    On Friday, Musk used funds from xAI to buy X/Twitter, cancelling the
    chance of a Tesla margin call should that stock drop any farther.

    So, it's like taking out a home equity line of credit on your house,
    then as the house price goes under water, getting a credit card and
    paying off the house?

    I don't see a thing about this on X.
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  • From Mike Powell@1:2320/105 to KURT WEISKE on Sun Mar 30 09:00:00 2025
    On Friday, Musk used funds from xAI to buy X/Twitter, cancelling the
    chance of a Tesla margin call should that stock drop any farther.

    So, it's like taking out a home equity line of credit on your house,
    then as the house price goes under water, getting a credit card and
    paying off the house?

    I don't see a thing about this on X.

    It does sound fishy, and like bad business, but I am not seeing the
    connection between buying X/Twitter outright and preventing the chance of a Tesla margin call. How does Musk buying X/Twitter solve Tesla's woes?


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  • From Kurt Weiske@1:218/1 to Mike Powell on Mon Mar 31 06:47:39 2025
    Mike Powell wrote to KURT WEISKE <=-

    It does sound fishy, and like bad business, but I am not seeing the connection between buying X/Twitter outright and preventing the chance
    of a Tesla margin call. How does Musk buying X/Twitter solve Tesla's woes?

    It solves Musk's woes. If Tesla stock had dropped too much lower, the
    bankers who financed the X deal could have done a margin call - told
    Musk he needed to provide more collateral because the original
    collateral's value had dropped too low.

    Doesn't help Tesla, specifically. I'd be curious if I was an xAI
    investor and saw a significant part of our company stock go to buying X.

    But, this way, Musk can pay off the loans for X with funding that xAI
    was provided, taking the dependency on the Tesla stock price. Maybe now
    he'll get out of Tesla, since he can dump his stock without concern for
    the price? Naw, he doesn't need the money now.
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