Elon Musk buys and ruins Twitter

BlueMoonAcrossThePond said:
Me included. Tesla seems like a nice brand (their Cybertruck fiasco notwithstanding), but no way in hell I'm gonna buy one.
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I've got one, best car I've ever driven. You shouldn't let politics worry you otherwise you wouldn't buy any car. The other car companies have probably done far worse to you I can guarantee that.

I've thrown my hat into two class actions against BMW after they allegedly cheated on diesel emissions and also seemingly missold me regarding the commission that the dealer got on brokering the finance.
 
inbetween said:
I've got one, best car I've ever driven. You shouldn't let politics worry you otherwise you wouldn't buy any car. The other car companies have probably done far worse to you I can guarantee that.

I've thrown my hat into two class actions against BMW after they allegedly cheated on diesel emissions and also seemingly missold me regarding the commission that the dealer got on brokering the finance.
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My problem with Tesla is the fact they have a history of messing with cars via software updates. there was one story of a guy who took his tesla to an official garage for a repair, they didn't have the right size battery in stock so they put in the larger one and gave the car an increased range.

He sold the car on and as soon as he did Tesla added an intentional limit to the range the car could do via a software patch. in effect crippling the car's capacity. To me thats a big no no. if it was an unofficial addon that could cause damage then you could maybe see a valid reason but this was something else entirely in my view.

And if they did it for 1 car that shows the intent to do it to any they want to.

Other car company's could well do the same but there doesn't seem to be any reports of it happening.
 
BlueHammer85 said:
Would hazard a guess the vast majority of those emoji responses are from bot fake accounts - Russia/China usually have a hand in this sort of thing. It’s a messed up world.
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I doubt it seeing the general response in the US. The shooting is literally being used for punchlines on the late night tv circuit, milllions and millions of Americans have very little or no sympathy for this man who made millions from fucking over normal people at their most vulnerable.
 
domalino said:
You do know this is complete and utter nonsense right?
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Why is it nonsense?

City are valued at an estimated £4bn but we only make what £80m profit per year? Did the Sheikh really buy city because he wanted a business that made £80m a year? That's nonsense.

The Sheikh bought city as an asset, he originally paid £200m and if city are apparently worth £4bn then that's a mere +1900% return. Assets are valued by what somebody else is prepared to pay. City as a brand for example are worth something and so is our intellectual property, you can't reduce that to a profit/loss account.

Tesla has 3,198,000,000 shares in issue and they're currently trading at $400 each. That's a market capitalisation of $1,279,200,000,000 = $1.28tn. Do the same maths for Ford and they're worth what $40bn? Musk could easily buy Ford if he wanted to, it would make far more sense than buying Twitter for $40bn which never made a single penny of profit.

If you had to invest in a future asset then ask yourself today would you rather hold Ford shares or Tesla shares? If you had bought Tesla shares just 5 years ago then you'd be sat on twenty times your original investment whereas with Ford you'd probably still have whatever you started with.
 
inbetween said:
Why is it nonsense?

City are valued at an estimated £4bn but we only make what £80m profit per year? Did the Sheikh really buy city because he wanted a business that made £80m a year? That's nonsense.

The Sheikh bought city as an asset, he originally paid £200m and if city are apparently worth £4bn then that's a mere +1900% return. Assets are valued by what somebody else is prepared to pay. City as a brand for example are worth something and so is our intellectual property, you can't reduce that to a profit/loss account.

Tesla has 3,198,000,000 shares in issue and they're currently trading at $400 each. That's a market capitalisation of $1,279,200,000,000 = $1.28tn. Do the same maths for Ford and they're worth what $40bn? Musk could easily buy Ford if he wanted to, it would make far more sense than buying Twitter for $40bn which never made a single penny of profit.

If you had to invest in a future asset then ask yourself today would you rather hold Ford shares or Tesla shares? If you had bought Tesla shares just 5 years ago then you'd be sat on twenty times your original investment whereas with Ford you'd probably still have whatever you started with.
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Because Ford's assets are worth much more than their market cap. And Mollusc has most of his personal shareholding in Tesla already tied up as guarantees for loans to buy twitter four times it's actual worth.
 
Mr Kobayashi said:
Because Ford's assets are worth much more than their market cap. And Mollusc has most of his personal shareholding in Tesla already tied up as guarantees for loans to buy twitter four times it's actual worth.
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Physical assets maybe but is all that matters? Blimey, what a fantastic world of grey. I guess with your hopeful demise of Tesla the most we should really look forward to is shite cars and the annual 5% dividend?

Are we served better by companies that build new technology almost as a non-profit or are we served better by a boring bland conglamorate which only serves its shareholders? Which would you want to create jobs in the UK?
 
inbetween said:
Why is it nonsense?

City are valued at an estimated £4bn but we only make what £80m profit per year? Did the Sheikh really buy city because he wanted a business that made £80m a year? That's nonsense.

The Sheikh bought city as an asset, he originally paid £200m and if city are apparently worth £4bn then that's a mere +1900% return. Assets are valued by what somebody else is prepared to pay. City as a brand for example are worth something and so is our intellectual property, you can't reduce that to a profit/loss account.

Tesla has 3,198,000,000 shares in issue and they're currently trading at $400 each. That's a market capitalisation of $1,279,200,000,000 = $1.28tn. Do the same maths for Ford and they're worth what $40bn? Musk could easily buy Ford if he wanted to, it would make far more sense than buying Twitter for $40bn which never made a single penny of profit.

If you had to invest in a future asset then ask yourself today would you rather hold Ford shares or Tesla shares? If you had bought Tesla shares just 5 years ago then you'd be sat on twenty times your original investment whereas with Ford you'd probably still have whatever you started with.
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Market cap doesn’t mean anything.

Perhaps the simplest and easiest explanation of that is to simply remind you that Musk had to put up over 50% of his Tesla stock (worth approx $60Bn on paper) as security for $4Bn worth of loans to buy Twitter.

Speaking of Twitter, Musk had to overpay by 4x, so that $40Bn valuation of Ford is meaningless when he’d likely see little change out of $150Bn.

Tesla as a company of course couldn’t raise the money because they are tiny.

And that’s before we even talk about how trying to sell off $40Bn of stock or borrow against more of it would probably burst the Tesla bubble and the most shorted stock in the world because of its awful business fundamental would finally see its value readjusted to meet reality.
 
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