Can you explain how that happens? I can understand the stockholders being upset when the stock collapses, but how does the stock price affect company revenue?
And that’s where it works both ways. If the stock collapses, Musk’s loans get called, and he’s personally screwed. By people who are owed a lot of money and usually also the type of people who have the means to make the remainder of your (likely short) life hell if you can’t honor your debt and no longer have the means to pay people to protect him.
Tesla’s earnings (not necessarily revenue) has always been minor compared to its stock price. Its debt service will get…interesting if the stock drops like that. And much of that is from selling carbon credits to other companies, i.e. it’s never even been a profitable business on its own without counting on government subsidies.
That’s not correct.
The electric automaker earned $10.7 billion from selling credits created by government climate programs — a total that accounted for a third of Tesla’s profits over the last decade, according to an analysis of securities filings by POLITICO’s E&E News. In the first nine months of 2024, some 43 percent of its net income came from those credits, which Tesla sold to rival carmakers after exceeding climate mandates in California and elsewhere
Ok, I stand corrected.
Still, not a business whose business dealings are that great. Their liabilities are sizable enough to suffer, should their financial standing come into question
So, to answer my question, Tesla will have to pay higher interest to borrow money when their stock price goes down.
Yeah, that’s one thing that will happen. But being able to borrow at all is a function of it, and a lot of corporate debt is short term. And many executive compensation packages are based partly on stock price.
So, things get interesting if it drops precipitously. Suddenly they may not be able to fund operations beyond the next few months or operating costs suddenly spike. A lot of it depends on finding willing lenders and business partners, but that’s where the Tiger analogy is apt. Musk attracts funding far beyond the fundamentals. If/when he goes, the company might soon follow.
And the amount of liquidity on hand becomes ever more critical. When you can’t raise enough from short-term loans or additional stock sales to cover immediate demands, even firms with a decent amount of capital can stumble and fall.
Overnight, Grok suddenly started replying to completely random queries with answers pushing views around White Genocide in South Africa. Hrmm… I wonder who is simultaneously in the Venn Diagram of has enough power at Grok to make sweeping algorithmic changes to the AI to alter its beliefs, has a vested interest in pushing certain narratives about South Africa and is incompetent and careless enough to push radical changes to a codebase without bothering to test it first?
When you say “completely random queries,” you aren’t exaggerating.
Its attempt to get back on track is just <chef’s kiss>.
Elmo is that good. And that subtle.
Rats - sinking ships - insider trading - what do I know?
Mr. Elmo continues to parley his Trump backing into billions.
Doesn’t sound like insider trading, just reading the writing on the wall from publicly available sources.
Insiders like CEOs are prohibited from trading period. Except on certain specific dates, like the day after releasing quarterly results.
Trading on other days, even if the WSJ is full of bull or bear predictions that day is illegal.
Of course illegal means very little when there is no police force.
The fucking idiot can’t even Nazi properly without fucking it up and becoming a laughing stock.
And “white genocide in South Africa” is not “hotly debated”, “Grok”(what a fucking stupid name). It’s an absolute lie, pure and simple. Only liars push it. GIGO, indeed.
Also if you wanted to perpetrate genocide, killing all White Afrikaaner farmers isn’t going to do it, you’d kill a fraction of a percent of the population at best. Nobody farms, most people live in cities.
Presumably somebody farms…
Most of them are not at risk of being victims of white genocide.
And anyway most farming is done by cows and wheat. People only get involved after most of the work is done.
It’s difficult to know exactly how many farmers or how many white farmers there are in South Africa. A trustworthy agricultural economist estimates 44,000 white commercial “farming units”. There are about 4.5 million whites in South Africa so if it’s one farmer per farming unit that’s just under 1% of the white population. Even if we assume an average farm household of four people that’s 4% of the white population.
Whether you look at white South Africans in general, or Afrikaners specifically, over 90% live in urban areas, not on farms.
From the article (bolding mine)
In total, she unloaded hundreds of thousands of shares — more than half her holdings as dictated by a pre-arranged selling plan filed with regulators as Musk began embracing right-wing politics.
This makes it sound to me like she jumped through all of the required hoops.