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What is the play here? Using money invested in xAI and its inflated valuation to bail out the X investors?
by adharmad 1y ago
What is the play here? Using money invested in xAI and its inflated valuation to bail out the X investors?
- poniko 1y agoYes same setup as when Tesla bought Solar city .. one playbook he pours out of.
- toomuchtodo 1y agoIt bails out Elon and means his Tesla shares (borrowed against to purchase Twitter) won’t be liquidated as Tesla’s share price continues to decline, using xAI investor funds. He uses hype and sentiment (inflating valuations) in the capital markets to always stay slightly ahead of consequences.
- rayiner 1y agoTesla shares are higher now than they were when he closed on Twitter in October 2022.
- TMWNN 1y agoHeck, TSLA today is higher than on 5 November 2024, less than five months ago!
- timeon 1y agoIt is almost the same price.
- deleted 1y ago[deleted]
- tedunangst 1y agoBut lower than on 6 November 2024, less than five months ago.
- dmix 1y agoIt's up 49% YOY https://www.google.com/finance/quote/TSLA:NASDAQ?window=1Y https://www.google.com/finance/quote/TSLA:NASDAQ?window=1Y This is a bit of a silly game, their stock is very meme-y so whenever you set the start of the time range the aggregate % can vary heavily.
- henry2023 1y agoAnd it's ~40% lower since the "roman" salute day. Anyone can pick random dates.
- minwcnt5 1y agoMaybe he knows something.
- nly 1y agoThe company is imploding. BYD is eating their lunch on most real metrics except their absurd valuation.
- kelnos 1y agoAnd dropping. No one can tell the future; it might recover before it hits margin-call territory, and it might not.
- consteval 1y agoSure, but it's becoming increasingly obvious to everyone that the American car industry is in major trouble. In a decade, I'm confident in saying a lot of American car companies will not exist. We see it in our day-to-day lives. People aren't buying new cars. Cars on the road are getting older and older. Views of Tesla continue to dwindle. Anything Stellantis is on life support. I mean, Chrysler has literally one car. GM is clawing for any sort of relevancy. And Ford is only afloat because of toxic masculinity. We all know that it's bad in the US, and we know outside of the US it's 100x times worse for these companies. We also know the US car market as a market is getting overshadowed. It doesn't matter what stupid investors think. We can see the writing on the wall. These investors are delusional, period.
- ivewonyoung 1y agoTesla shares are higher than when Twitter was acquired. 'Continues to decline' sounds like weasel wording that the media likes to use to push a narrative that doesn't exist. Edit: Comment flagged for pointing out inconvenient facts, it's wild out there
- toomuchtodo 1y ago67% of Americans would not consider buying a Tesla, new poll says - https://electrek.co/2025/03/28/most-americans-would-not-consider-buying-tesla-new-poll/ https://electrek.co/2025/03/28/most-americans-would-not-cons... - March 28th, 2025 Tesla (TSLA) Q1 delivery consensus: 377,000 EVs – worst performance in 2 years - https://electrek.co/2025/03/28/tesla-tsla-q1-delivery-consensus-377000-evs-worst-performance-in-2-years/ https://electrek.co/2025/03/28/tesla-tsla-q1-delivery-consen... - March 28th, 2025 Tesla is banned from Canada EV rebate program, gov freezes suspicous $43 million in rebates - https://electrek.co/2025/03/25/tesla-banned-canada-ev-rebate-program-gov-freezes-suspicous-43-million-rebates/ https://electrek.co/2025/03/25/tesla-banned-canada-ev-rebate... - March 25, 2025 Tesla sales fall by 49% in Europe even as the electric vehicle market grows - https://apnews.com/article/tesla-sales-recall-trump-byd-b6f5da15be491d16e3020598e3ddf861 https://apnews.com/article/tesla-sales-recall-trump-byd-b6f5... - March 25, 2025 Tesla’s fall from grace may have no equal, says JPMorgan: ‘We struggle to think of anything analogous’ [$120 price target] - https://finance.yahoo.com/news/tesla-fall-grace-may-no-180054813.html https://finance.yahoo.com/news/tesla-fall-grace-may-no-18005... - March 13, 2025 Tesla’s stock nosedives — wiping out $700B in gains since Trump’s election victory - https://nypost.com/2025/03/07/business/tesla-stock-drop-erases-700b-in-gains-since-trump-election/ https://nypost.com/2025/03/07/business/tesla-stock-drop-eras... - March 7, 2025 Australian Tesla sales plummet as owners rush to distance themselves from Elon Musk - https://www.theguardian.com/technology/2025/mar/06/australian-tesla-sales-plummet-elon-musk https://www.theguardian.com/technology/2025/mar/06/australia... - March 6th, 2025 https://finance.yahoo.com/quote/TSLA/ https://finance.yahoo.com/quote/TSLA/ (1YR) Facts you don't like aren't "weasel words."
- TMWNN 1y agoivewonyoung and raynier are still correct. TSLA today is higher than on 5 November 2024, less than five months ago.
- kypro 1y agoStill, you have to give it to him, it works, and this has allowed him to do some incredible things beyond just hype. What he's pulled off with xAI more recently is really quite incredible. And obviously this isn't first time Elon proved he can execute better almost anyone else. I don't really have opinions on him as a person, but as a an entrepreneur you cant flaw him imo. He always finds a way to beat the odds.
- belter 1y ago> What he's pulled off with xAI more recently is really quite incredible. What?
- deleted 1y ago[deleted]
- toomuchtodo 1y ago"He's a terrible human, but look at the model benchmarks!" We're different people I suppose.
- SV_BubbleTime 1y agoCan you qualify the first part? I haven’t met him.
- consteval 1y agoYou don't have to meet someone to know they're awful. I've never met Adolf Hitler - but I'm pretty confident he's an awful person. Elon Musk uses his immense wealth to cheat. He's infiltrated the government and uses his power to directly harm Americans, in order to further enrich himself. In addition, almost everyone who has worked for him has corroborated that he is an awful boss. He is also prone to dishonesty. When confronted with something that requires accountability, his strategy is to protect his lies with newer lies. FSD, the state of twitter, DOGE, and on and on. He is so dishonest that it's almost always safer to assume he is lying than to give the benefit of the doubt. But, even on a personal level, he struggles to stay afloat. He has impregnated multiple woman and is practically forming an army of illegitimate children. Those who were close to him either speak of him with extreme disdain or not at all. The only child he has any connection to is used as nothing more than a political pawn. The only reason anyone even thinks he might be okay is because he's rich. We tend to have an extreme bias in favor of the wealthy, almost akin to a brainwashing. The reality is being rich does not correlate with being moral or decent. It doesn't correlate with being intelligent either, but that's a separate conversation.
- deleted 1y ago[deleted]
- Hyperboreanal 1y ago[flagged]
- jimkleiber 1y agoAnd now also uses government capture to dismantle regulatory agencies that would come after him for breaking the law.
- zitterbewegung 1y agoThat and the data that is a part of X can be used by the xAI team. I expect it will be in the TOS if it isn't there already. "xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent."
- sunaookami 1y agoThere is a setting (opt-out outside of EU, opt-in inside EU I think) that allows/forbids data sharing with X since Grok was released.
- phillipcarter 1y agoOh yes, you can definitely be reassured that Elon and his openai dropouts working at xAI will follow that one to the tee.
- jsheard 1y agoWeren't they already doing that? I recall before I bailed from X/Twitter they already added an AI training consent toggle, which silently defaulted to "I consent" for all existing users of course.
- palmotea 1y ago> I recall before I bailed from X/Twitter they already added an AI training consent toggle, which silently defaulted to "I consent" for all existing users of course. There's a solution for that: build a Twitter bot that posts strange things.
- jsheard 1y agoAre the porn bots still around? Maybe they were the heroes we needed after all.
- spiderfarmer 1y agoI think any LLM that’s not trained on X data comes out ahead.
- HappySweeney 1y agoTo me it appears to be a way to pay his lenders without liquidating or collateralizing more Tesla stock.
- blueelephanttea 1y agoSo he can use the funds he raised for xAI to pay out the lenders for the initial Twitter purchase? Otherwise the lenders are just getting xAI stock (all stock deal) which I assume is illiquid?
- gscott 1y agoA stock ponzi scheme to keep him afloat? Soon he will start a new venture and use that venture to save the previous venture and so on. Maybe a robot clothing company because robots shouldn't be naked.
- bradleyjg 1y agoThe debt goes to the merged company and so can be serviced or retired using the funds of the whole company.
- ajaimk 1y agoYes. He did it with Solarcity already.
- dashundchen 1y agoSolar roofs was one of many scams. And he scammed the taxpayers of New York State for a billion dollar factory to build solar roofs. Factory built, stock was pumped, no solar roofs though. The puffery about waste and fraud is pure projection coming from a scammer like Musk.
- whynotminot 1y agoI forgot all about the solar roof thing. In concept seems like a really interesting idea. I guess it never ended up working out.
- paul7986 1y agoWho also talks like Sam Altman that the human race will need to all be on welfare (Universal Basic Income) because of AI. I don't understand it all ...cut people's jobs who make multitudes of billions less (cut 25k probationary employees like ripping off a band-aid), want people to work like the Chinese do (day and night) so we are the leader in AI (?) and after AI starts replacing jobs we all need to be on a welfare system. Isn't a welfare system the biggest waste to the Republican party (independent here)? Does he even know his end game with all this or he's just having fun be the most powerful person?
- deleted 1y ago[deleted]
- russdill 1y agoSeems like anyone who has three "shares" of X now has 1 share of xAI+X, which by Musk's valuation is three times as valuable as X. Assuming the xAI share price is wildly inflated, it seems that the inflated valuation has devalued their actual holdings. Eg, for an extreme example, if xAI is worth zero, their actual holdings are now a third of what they were.
- deleted 1y ago[deleted]
- VirusNewbie 1y agoMakes recruiting easier, better for the X employees as well.