Elon Musk Doesn’t Have Enough Liquid Assets To Buy Twitter

Elon Musk Doesn’t Have Enough Liquid Assets To Buy Twitter

Galloway further claimed that Musk might even find it difficult to get the $40 billion loan from banks due to the risks involved. Most banks will likely refuse the full loan amount, which means Musk might have to go to multiple banks to accumulate the money. Even then, the banks will likely ask for generous margin requirements on his Tesla stock to protect their investment. So even if Musk somehow manages to secure the loan, he might be in trouble if the value of the Tesla stock goes down, as it might trigger a margin call, resulting in his Tesla shares being sold by the banks to recoup their investment.
Galloway and Musk have some history between them, with the two having locked horns previously on Twitter. Galloway has been a vocal critic of Musk and has attracted the wrath of the Tesla and SpaceX CEO in the past. In November 2021, Musk referred to Galloway as “that insufferable numbskull” after the latter suggested that the Tesla stock was overvalued following Musk’s decision to sell a small stake in the company. The latest developments are unlikely to make their relationship any better, and it will be interesting to see how Elon Musk responds to Galloway’s claims.
Source: Pivot, Elon Musk/Twitter

#Elon #Musk #Doesnt #Liquid #Assets #Buy #Twitter

Elon Musk Doesn’t Have Enough Liquid Assets To Buy Twitter

Galloway further claimed that Musk might even find it difficult to get the $40 billion loan from banks due to the risks involved. Most banks will likely refuse the full loan amount, which means Musk might have to go to multiple banks to accumulate the money. Even then, the banks will likely ask for generous margin requirements on his Tesla stock to protect their investment. So even if Musk somehow manages to secure the loan, he might be in trouble if the value of the Tesla stock goes down, as it might trigger a margin call, resulting in his Tesla shares being sold by the banks to recoup their investment.
Galloway and Musk have some history between them, with the two having locked horns previously on Twitter. Galloway has been a vocal critic of Musk and has attracted the wrath of the Tesla and SpaceX CEO in the past. In November 2021, Musk referred to Galloway as “that insufferable numbskull” after the latter suggested that the Tesla stock was overvalued following Musk’s decision to sell a small stake in the company. The latest developments are unlikely to make their relationship any better, and it will be interesting to see how Elon Musk responds to Galloway’s claims.
Source: Pivot, Elon Musk/Twitter

#Elon #Musk #Doesnt #Liquid #Assets #Buy #Twitter