“On Hold” is code for ‘Tesla stock is plummeting, and I can’t afford this purchase anymore, so I’m looking for any way out.”
The week Elon announced his purchase of Twitter, I said he’d find a way to get out from underneath it. Today, we know what he plans on blaming when he backs out, and it’ll only cost him $1 billion instead of the $200 billion he has cost Tesla investors.
This is really why the deal is on hold: Since Elon Musk bid for Twitter we've seen Tesla stock drop from $1,100 a share to now $726 a share. He now would have to sell much more Tesla stock to finance deal. He's petrified to go bankrupt like Trump has. #ElonsProblems https://t.co/rsREhPSOKg
— (((DeanObeidallah))) (@DeanObeidallah) May 13, 2022
There’s a $1 billion penalty if Musk pulls out of his agreement to buy Twitter, and that sounds like a bargain right now.
It will cost 1 billion to service the debt on Musk’s financing. Combine that cost with the drag on Tesla stock after using his position as collateral, and you have a very stressed-out Elon Musk looking for ANY escape hatch and the 5% bot revelation (we knew that three weeks ago) is that hatch.
(No, he isn’t)
It’s a shame. I was looking forward to Musk owning Twitter, for real. While the alt-left was busy screaming about fascist Twitter, I was looking forward to seeing if Elon could make Twitter that fire hose of revenue he sold us on.
Guaranteed, we’ll never find out. He was never going to buy it. I’m more convinced than ever.