Disorderly, out of control, falling.
Musk may be going to the other extreme.
On April 14, Tesla CEO Musk proposed to buy Twitter for $54.20 per share in cash, and some media estimate that the acquisition may eventually cost $43 billion. However, according to Bloomberg's calculations, most of Musk's assets are equity, and his available cash is more than $3 billion.
That said, Musk doesn't have as much cash at his disposal.
If Musk wants to scrape together this fee for a short time, then the two most direct ways are: First, sell Tesla stock. Although this method is the most direct, but this kind of large-scale selling is bound to put Tesla's stock price under pressure, as an important part of Musk's wealth, once Tesla has a problem, then Musk's entire basic disk will be shaken.
Second, equity pledge. In fact, in the United States listed companies, this phenomenon is not very common, because the board of directors will be very cautious about such financial arrangements, as a founder or important shareholder, once the stock price falls below the liquidation line, then can not add more margin, will cause the company's "stampede" behavior, which is not friendly to other shareholders.
In fact, Musk's behavior has also been resisted by Twitter's board. On April 16, Twitter's board of directors has decided to adopt the "poison pill plan" to defend against hostile takeovers.
The attitude of the board of directors shows that most shareholders have shown distrust of Musk.
In fact, before deciding on the "cash acquisition" acquisition, Musk had packaged himself as a "white knight" who saved Twitter, promoting his bid for Twitter as a selfless dedication to the benefit of mankind.
But as we all know, because Musk has more than 80 million followers on Twitter, this alone has saved Tesla a lot of advertising money in the past few years. Not only that, he also hyped up Bitcoin, the most exaggerated is the promotion of Dogecoin, and behind these behaviors, it has to be suspicious.
In addition, when he reduced his tesla stock last year, he also launched a vote to use public opinion to hedge the risk of reducing his holdings, which made Musk fire.
The acquisition of Twitter, I am afraid that behind it is more because he wants more "freedom", or to interfere with the platform's review mechanism.
More importantly, when Musk bought Twitter shares, he did not disclose his 5% stake within the specified time limit as stipulated by the securities law. Instead, use the time difference to buy more stocks to reduce your own costs. It was not disclosed to the outside world until the holding reached 9.2%, and on the day of the disclosure, Twitter's stock price rose by more than 30%, creating the largest one-day increase since the listing.
Imagine if the news were disclosed when holding 5% of the shares, how much would Musk's purchase costs rise? In the future, Musk's behavior may encounter more trouble.
It turns out that whether it is Tesla or Twitter, Musk is the most "unstable" factor, before Musk because of his privatization of Tesla's "joke", so that Tesla and himself have received a high fine.
Referring to the consequences of the last remarks made during Tesla's "privatization", it is estimated that he will be punished more severely by the SEC this time.
The impact of this incident may eventually exceed everyone's imagination, because the final result of the delusional attempt to achieve certain goals by controlling public opinion is not too good.
As for Musk's plan B, I don't think it is actually necessary to pay too much attention, from the current point of view, Musk's purchase of Twitter has generated a considerable objective profit, and his contradictions with management have been publicly placed in front of the stage, and his so-called premium acquisition probability does not reach the psychological price of most shareholders.
Overall, I think Musk is on the brink of danger, his actions are likely to cause more trouble for himself, and if the event eventually goes out of control, then it is possible that Tesla will also be affected.