Thursday, May 19, 2022

Elon Musk And Twitter

 Why is Musk sowing doubt on his Twitter deal?  Is it because of "fake" or auto/bot  accounts?  Or, is it something else?  For the answer look no further than the chart below.

Tesla Stock Down 37% From One Announcement To The Next

Musk was (is?) going to finance his Twitter purchase via a loan backed by his holdings of Tesla stock - in other words, he was going to margin his shares. 

Margin loans are tricky business; when share prices go down the lender calls for extra cash and/or more collateral to keep the loan to collateral ratio topped up.  That's where the term "margin call" comes from, and if the "call" is not met immediately, the lender sells out the collateral position to cover the "call" amount.  And that's how crashes happen... 


  1. Elon musk should be slang for the scent a person gives off when they’re sketchy/disappointing. “I was excited to meet his brother, but the guy had an unsettling elon musk.”

    1. Hahahahahaha, good one, I musk remember it 😝😝