Twitter

[Eggchaser]

I don’t really understand how he’s the richest man on earth. He didn’t invent Tesla’s technology and they didn’t invent the electric car. It’s not even clear they have the best version of it.

He's a great hype man who got in at exactly the right time in two emerging technologies to benefit from the humongous stock boosts.

[Balderdasha]

Timeline of how Elon made his billions here. Summary Zip2, PayPal, SpaceX, Tesla:
https://www.news18.com/amp/photogall...s-5063911.html

BUT, the main bulk of his wealth relates to the aforementioned hype and the fact that Tesla is absolutely insanely overvalued.

Some details on Elon's family background prior to the 1990s here too. He didn't start with nothing. His father, Errol Musk, made his fortune from consulting and property development, and had a stake in an emerald mine. Elon went to a prestigious private school and Errol "owned thoroughbred horses, a yacht, several houses and a Cessna."

https://buffalonews.com/business/loc...b48a4f4f3.html

[Balderdasha]

I feel it's important to highlight the family wealth of billionaires who proclaim to be "self-made".

[Balderdasha]

[Balderdasha]

NB, I fact checked those claims and the only error I can see is that Errol Musk only owned a stake in the emerald mine, not the whole mine.

[DCI Harry Batt]

Who is the third bloke?

[Balderdasha]

Who is the third bloke?

Warren Buffett, world's fifth wealthiest person.

[Balderdasha]

Actually, hard to keep track with all the fluctuating share prices. He was 5th wealthiest in June 2022, currently 8th wealthiest. He was the richest person in the world in 2008.

[DCI Harry Batt]

Ta.

[ursus arctos]

It is a very good bet that Musk will no longer be the "richest* come year end.

This measure of "rich" isn't as dumb as that of football clubs being measured solely by turnover, but it is still very flawed given how much of the individuals' wealth is tied up in single stocks they can't liquidate at once.

[WOM]

BUT, the main bulk of his wealth relates to the aforementioned hype and the fact that Tesla is absolutely insanely overvalued.

For perspective, a 'sane' measure of a stock's price is the Price to Earnings ratio (PE). A good number is from 14 to 17. As of last week, Tesla's was 94.33.

[caja-dglh]

Warren Buffet is by far the more impressive one up there. Though in a lot of ways he is like Charles Koch but with a listed stock price.

[San Bernardhinault]

And I don't think I ever recall Buffet being called a "self-made man" in the same way as the others.

[Slightly Brown]

I thought he pretended to buy Twitter so he had a cover to sell Tesla stock at an inflated price. Either way, dude’s a galactic
fanny.

[Hot Pepsi]

I thought he pretended to buy Twitter so he had a cover to sell Tesla stock at an inflated price. Either way, dude’s a galactic
fanny.

I read that too. It doesn’t seem quite plausible.

[Slightly Brown]

I think it’s a mixture of him thinking he truly is amazing, being vindictive because he was slagged off on Twitter, realising his wealth through stock sales and petty megalomania boredom.

[ursus arctos]

Making a multi billion dollar bid for a public company is an effective screen that allow one to sell over valued stock without triggering alarms or causing a precipitous drop in the share price, but entering into a binding contract to complete the purchase is the last thing one would want to do if that was one's primary intent.

He is going to lose in Delaware and throw more epic tantrums about how unfair the jealous world is to his unique genius.

And his playing footsie with GOP is not going to be terribly effective in the Court of Chancery.

[Hot Pepsi]

Yeah, but if the market knows or widely suspects you’re trying to dump stock, your cover is blown and now you’ve spent at least a billion on a failed ruse.

[Slightly Brown]

Tesla is a massively overvalued company, so whatever he sold the stock for was worth the $1bn he has to pay for pulling out of the Twitter deal.

[ursus arctos]

He doesn't have to pay 1 billion.

It is quite possible he will have to spend 33 billion.

[caja-dglh]

Yeah - $1bn is the best case outcome he is looking for. Also this whole nonsense and the increased leverage on his Tesla stake is continuing to place massive downward pressure on his dollar wealth. There is very little light in which this doesn't appear like an awful self mutilation.

[ad hoc]

I'm sure he'll cope

[Slightly Brown]

<checks the internet> Ah. I was going off old information. I didn’t realise he’d actually sacked it off. Looks like it’s going to be really ugly.

[caja-dglh]

Please don't misunderstand - I am absolutely here for it. I would say it couldn't happen to a better person, but Peter Thiel exists.

[San Bernardhinault]

It's possible that paying 10x over true value for Twitter may still be better value than holding Tesla stock.