Elon Musk Broke?

If true, that is pretty sad. He needs to get control of his personal self if he wants to continue to succeed in his business dealings. I know he does pot (which he shouldn't), but sure hope his docs didn't put him on some other prescription drugs which are screwing up his mental health. Some of his actions and what he says just don't make sense coming from a person in his position and background.

Maybe there is a fine line between genius and wacko. Reminds me of Howard Hughes.
 
R P said:
Some of his actions and what he says just don't make sense coming from a person in his position and background.

Maybe there is a fine line between genius and wacko. Reminds me of Howard Hughes.
Click to expand...

Or may be arrogance, that he feels that he has the money and fame to say anything and get away from it. Elon may have an illusion (or delusion) that he is not accountable for his words, just because he is "Elon".
 
Lack of Liquid Assets just means that you keep your money working.. I have 5 free and clear rental houses, a free and clear Classic Corvette and a lot of other assets, and yet, I keep very little money in my accounts as the money does not work for me if it sits in accounts. I can make my money work for me and that's why I don't keep any cash around. On paper, I have a really good net worth but my bank account never has more than $7k on it. I always pay the maximum on any debts I have. Some of them however are credit lines that I have access to but those are not cash.. They are credit lines.. It would not be smart of me to keep the money in an account that gives me close to no interest if I can pay down debt that I pay 5% interest for. Elon's reasons why he has no cash may be similar. I personally keep close to no cash around as I can always draw money from the credit lines if I ever need extra money.
 
BlueKonaEV said:
Lack of Liquid Assets just means that you keep your money working.. I have 5 free and clear rental houses, a free and clear Classic Corvette and a lot of other assets, and yet, I keep very little money in my accounts as the money does not work for me if it sits in accounts. I can make my money work for me and that's why I don't keep any cash around. On paper, I have a really good net worth but my bank account never has more than $7k on it. I always pay the maximum on any debts I have. Some of them however are credit lines that I have access to but those are not cash.. They are credit lines.. It would not be smart of me to keep the money in an account that gives me close to no interest if I can pay down debt that I pay 5% interest for. Elon's reasons why he has no cash may be similar. I personally keep close to no cash around as I can always draw money from the credit lines if I ever need extra money.
Click to expand...
Well, it is all relative. Elon is a multi multi billionaire, so makes no sense that he can't quickly raise a few mil to cover legal settlements like that. Not to mention credit lines.

While I am mostly invested, I actually do keep a fair bit of cash on hand (relatively speaking) not just to cover unseen cash needs, but I am also an opportunist in the markets. I like to do swing trades (or grab some good deals for longer term investment). Kind of hard these days, though, with the markets still near tops. But there are always individual stocks that can be played.

It is going to be an interesting fall again, not just because of China and Trump's woes, but also Brexit and what will happen there. I just want to be ready...
 
BlueKonaEV said:
Lack of Liquid Assets just means that you keep your money working.. I have 5 free and clear rental houses, a free and clear Classic Corvette and a lot of other assets, and yet, I keep very little money in my accounts as the money does not work for me if it sits in accounts. I can make my money work for me and that's why I don't keep any cash around. On paper, I have a really good net worth but my bank account never has more than $7k on it. .....
Click to expand...

Yes makes sense. But that is not an excuse for you to claim that you do not have money to pay your obligations. Yes selling your property is going to take time, but it is not like owning swampland in Florida, which may have no real value. There is still a market for Tesla share or his Glufstream jet. You. could, push comes to shove, get a loan on your houses, as could Elon. Elon is using it as excuse to say that he cannot pay damages. If that was good excuse, everyone with assets tied up in ill-liquid investments could say anything they want and then claim inability to pay any damages. Unfortunately it does not work that way. Courts can attach assets and have them sold to pay off obligations. This is an excuse, not really a valid argument.

R P said:
Well, it is all relative. Elon is a multi multi billionaire, so makes no sense that he can't quickly raise a few mil to cover legal settlements like that. Not to mention credit lines.
Click to expand...
Exactly
 
R P said:
Well, it is all relative. Elon is a multi multi billionaire, so makes no sense that he can't quickly raise a few mil to cover legal settlements like that. Not to mention credit lines.

While I am mostly invested, I actually do keep a fair bit of cash on hand (relatively speaking) not just to cover unseen cash needs, but I am also an opportunist in the markets. I like to do swing trades (or grab some good deals for longer term investment). Kind of hard these days, though, with the markets still near tops. But there are always individual stocks that can be played.

It is going to be an interesting fall again, not just because of China and Trump's woes, but also Brexit and what will happen there. I just want to be ready...
Click to expand...
All of my extra money goes into Real Estate. I have credit lines for those deals and I pay them down quickly whenever I have cash. Of course, as I pay down my credit line, my available line increases and when the available line is sufficient for another house purchase, I'll buy another house.. My credit line right now is at 5% interest..
 
interestedinEV said:
Yes makes sense. But that is not an excuse for you to claim that you do not have money to pay your obligations. Yes selling your property is going to take time, but it is not like owning swampland in Florida, which may have no real value. There is still a market for Tesla share or his Glufstream jet. You. could, push comes to shove, get a loan on your houses, as could Elon. Elon is using it as excuse to say that he cannot pay damages. If that was good excuse, everyone with assets tied up in ill-liquid investments could say anything they want and then claim inability to pay any damages. Unfortunately it does not work that way. Courts can attach assets and have them sold to pay off obligations. This is an excuse, not really a valid argument.


Exactly
Click to expand...

As shorts have reported for a long time, Elon is mortgaged to the hilt, he has borrowed the max he could against all 5 of his homes, and also his shares in Tesla, and SpaceX.
 
David Green said:
As shorts have reported for a long time, Elon is mortgaged to the hilt, he has borrowed the max he could against all 5 of his homes, and also his shares in Tesla, and SpaceX.
Click to expand...

What amounts are we talking about in the diver case. As far as I see, he is being sued for $75,000 plus I am sure legal costs.
https://www.theguardian.com/technol...ernon-unsworth-sues-elon-musk-over-pedo-claim

Let us say with punitive damages, it is about $3 million in damages, say another $2million in legal fees. Say $5 million. For a person, who is worth $23 Billion, I am sure he has some assets that he can liquidate to pay this or borrow on and could find ways to pay even $10 million. I am not crying for Elon here. Let him settle the d*mm case and move on
 
interestedinEV said:
What amounts are we talking about in the diver case. As far as I see, he is being sued for $75,000 plus I am sure legal costs.
https://www.theguardian.com/technol...ernon-unsworth-sues-elon-musk-over-pedo-claim

Let us say with punitive damages, it is about $3 million in damages, say another $2million in legal fees. Say $5 million. For a person, who is worth $23 Billion, I am sure he has some assets that he can liquidate to pay this or borrow on and could find ways to pay even $10 million. I am not crying for Elon here. Let him settle the d*mm case and move on
Click to expand...


Elon is fighting the lawsuit so far, he could propose a settlement at any time (his ego won't let him?), but not sure he has done that? As for the amounts, I have no idea how they calculate punitive awards in a case like this, but if it goes to a jury trial, that could be bad for Elon...

As for Elon being broke, he has loans on all of his homes at the maximum LTV he could get last year. As for his shares, he has loan covenants that do not allow him to sell without approval of the lenders, and his rate of leverage must be pretty high as Tesla has listed Elon's shares having a margin call as a risk to shareholder value in the past. If Elon had to settle with Unsworth he might have to sell substantially more stock than the actual amount of the settlement depending on his line of credit covenants. Interesting stuff... This lawsuit is not the biggest threat to Elon and Tesla now, by far the Solar City suit is a much larger risk.
 
You must log in or register to reply here.
Back
Top