Elon Musk's revamp of Twitter into a paleolibertarian 'private' Utopia is coming apart at the seams. Tesla shares are being dumped, with the market now aware that nearly $7 billion Tesla shares were used in 'collateral' by Musk to finance the Twitter acquisition.
Tesla share price is under pressure, with the position above set on 2022-10-11 before the 19th earnings call, which showed Q3 to have a collapse in earnings and massive shortfall in revenue for Elon Musk's electrical car company. The position/s closed on 14th and 24th of October (2022) from $219 to $205 (14th) and $208 (20th), at 5.66% and 4.80% decline in the share price. Please refer to Chart 1.
Musk is now the owner of Twitter and in servicing the $44 Billion paid for the social media platform, where the loans that he had borrowed, under the Twitter banner, were from a slew of investment banks including the behemoth commercial bank Bank of America.
But more importantly is the amount of Tesla shares that Musk sold in adding to the $44 billion Twitter acquisition, which was reported at $6.9 billion. And since Twitter has now gone private and is no longer a tradable company, Hedge Funds will start to look at Tesla as a continued short position in connection to the debt load and issues that Musk will have with Twitter in his right wing 'libertarian' transformation of the platform.
Chart 2. For good measure.
Please note the Tesla trading ranges of $211 and $200.
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