- cross-posted to:
- enoughmuskspam@lemmy.world
- cross-posted to:
- enoughmuskspam@lemmy.world
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Still worth $800 billion. Toyota is worth $200 billion. Tesla sells a fraction of the cars as Toyota. Tesla is still so overvalued that it needs to lose $750 billion to approach being fairly valued, and that’s without accounting for the destruction of the brand.
Always in my mind is that this was part of the plan. If Tesla loses all this value then Musk can buy up the stock and take full control.
Its worth considering when you see the S&P 500 falling, too. Maybe it’s all in the plan.
Yeah, that doesn’t really make sense. It also makes it easier for other people to buy, and a lot of his wealth is tied to their value. From a quick search, $117b of his $421b wealth is in Tesla stocks. So about 1/4 of his wealth is based on whatever Tesla stock value is at the moment. If it drops, he has a lot less to buy with, and some is already borrowed against. Basically his wealth drops at nearly the same rate Tesla value drops, while others may not have this issue. Those other people/groups are much more likely to buy out Tesla than Musk is in that situation.
While I love this, can someone explain what exactly this means for a company? How exactly does this hurt them or their Nazi leader? If I’m worth 500 billion and lose 150 billion, how does my life change?
The mega wealthy use their stock as collateral for extremely low interest loans. They need 100 million dollars? They take out a 100 million dollar loan at 1%/yr interest and stake 100 million of stock as collateral.
This way, they get 100 million to spend ans pay 1% as “tax,” not the 15% that capitol gains demands.
The less value his stock holdings have, the less collateral he has, the less money he has, the less power he has.
From a wider stance, severely gutting the wealth of a billionaire by organized class action is a loud and clear warning to other billionaires to pump the brakes on trying to restart the gilded age. Millions and millions of people working together can hurt them more than a tiny few of the ultra wealthy, ultra connected can help them. That’s the point.
Make billionaires wary again.
And if we’re really lucky, the value of TSLA will fall enough that he gets a margin call and is forced to sell shares to pay back the loans.