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Taking into account Elon Musk is limited in the amount of stock he can sell from Tesla, the first conclusion is he does not have the money to buy Twitter.

The offer:

https://www.sec.gov/Archives/edgar/data/0001418091/000110465...

mentions all cash. 43 billion in cash is a lot of dow, but the offer does not specify where the money is coming from.

Are frivolous purchase offers also subject to possible lawsuits, or should I get my buddies together, and also make an offer for Twitter?

"Twitter board gets an 'F' for dealing with Elon Musk: former SEC chairman"

https://finance.yahoo.com/news/twitter-board-gets-an-f-for-d...



I (and Tesla stockholders) am reminded of his announcements around buying Tesla in cash, too. This guy's fans seem to have an unlimited budget for "but this time, it's real!"


There are plenty of ways to pay cash without selling Tesla shares


I'm not talking about selling Tesla shares. I'm noting a similarity between this action and his fraudulent tweets in 2018 https://www.sec.gov/news/press-release/2018-226


Morgan Stanley is basically going to finance it with TSLA shares as collateral.


Could be, but is not mentioned in the offer. Also maybe most of those shares are also already offered as collateral for something else.


Can you provide sources or any meaningful numbers beyond handway 'most' regarding which of his shares are used as collateral?

His NW went from 20B to 270B in last 2 years.

If your house went from 200k to 2.7M, the bank will somehow find it in their heart to lend you a lot more dollas than before ¯\_(ツ)_/¯

Doing the actual maths 40B is chump change and he could probably borrow couple hundred B or more if the things he's buying also have market value banks will lend on.

Unless he's somehow borrowed hundreds of Bills in the last 2 years? Any sources for that, I looked because of what you said but didn't see any actual info on loans beyond .5B in 2020 which is a fifth of a percent of his NW. Literally < 1% of his NW ??


Looking at Morgan Stanley CET1, and regulations on the percentage limits, of how much a bank can lend to a single customer, I don't think they can do this deal and stay compliant. But regulation compliance was never a problem at Wall Street.

https://www.morganstanley.com/content/dam/msdotcom/en/about-...


I take it you are tacitly agreeing with the actual maths and figures.


The recent news about the deal still show he is 21 Billion short.




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