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So hell get taxed for exchange of speculative assets right?... Right?!
No because it's a loss, so he'll actually get 10bln in tax credit
The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt)
Lol, he actually think the value of Shitter is still $45B, as when he bought it. That's cute.
If I recall, fidelity wrote off most of its investment in twitter less than a year after the acquisition: https://www.forbes.com/sites/tylerroush/2024/09/30/elon-musks-x-is-now-worth-around-a-fifth-of-the-44-billion-he-paid-for-it-fidelity-says/
Wrote down not off.
https://www.theguardian.com/technology/2024/jan/02/x-twitter-stock-falls-elon-musk
Debt is written off when deemed unrecoverable.
Assets can be written down when the value is lower than expected. Often this is due to more rapid depreciation of capital assets due to damage or impairments to goodwill (brand failure).
But none of that matters because private equity valuations are all bullshit and mean nothing anyways.
https://www.wallstreetoasis.com/forum/private-equity/private-equity-is-a-joke
Musk's slight of hand shell game to keep from losing his shirt if his Tesla stock keeps dropping and his X financiers come looking for money.
This might have the opposite effect he wants, xAI investors no longer have a clean AI investment and are now linked to a failing social media platform.
xAI is already losing bigtime vs other AI companies, this just makes it even less attractive.
For reference, he bought it for $44B.
https://wikipedia.org/wiki/Acquisition_of_Twitter_by_Elon_Musk
YAAASSSS!! I love to think of him losing money without money his influence plummets
It's almost better than losing money. He put up a certain amount of Tesla stock as collateral for the loan (essentially) to buy Twitter.
So if Tesla's stock tanks, those creditors will be able to claw more stock away from him. If it tanks enough, he's in hostile takeover territory.
I love it when you talk dirty 🤪
We enter hostile takeover territory around $115
Are the authorities aware? It's very illegal to sell exctacy in the US.
So what is he planning on doing? Make the worlds most corrupt porn Ai service? Or an AI political drama machine?
Companies are no longer requires to disclose that they are owned by a shell. This is the beginning of his ultimate grift.
So... computer programs can now own property. Interesting. Is this the first step in giving computers the vote?
AI dystopia
Well, not really. Twitter was his own private property that he bought with borrowed money secured against his Tesla shares. xAI on the other hand is financed by investors whose money he used to bail himself out at a price he made up himself since Twitter is no longer publicly traded. So this is, in my opinion, misuse of investor funds; the picture would be true if xAI used how own money to do this, but no.
On one hand,I think this is serious fraud. On the other, my understanding for anyone investing into his companies is very limited, there are so many red flags on so many levels.
I suspect the government(s) that represent the bulk of the funds behind xAI threw the money out to continue operating exactly as he has been.
They thought all they were getting was a piece of the latest hype. Now they've got leverage over the entire govt of the United Fucking States!
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His juvenile enthusiasm for the letter X is so ten-year-old boy with sunglasses.
He called the tesla models S3XY, and the 3 is only because Ford was gonna sue him if he used E.
Next one will be the Tesla Model 80085..
“X” is also 88 in ASCII. 88 is a Nazi reference to “heil hitler”. Big surprise.
i know it's just for source but fuck the ADL, they've thrown in with the fascists
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Who did that‽ It's so beautiful, it should be posted all over Xitter lol
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using AI hype to finance X loans?
Correct.
It's actually a smart move.
The dumb money are those pouring hundreds of billions into the AI hype. This is .com bubble on steroids.
And sure, AI obviously is becoming an important market, but it will not be the current leaders who will dominate the tech. Like the internet, it's just too easy to catch up for competitors. Pouring $100B into AI today will only mean you lose out to the $1B startup in 2 years. The incumbents will go broke.
I don't understand how this gets him free of the loans. My understanding is that he financed $14B of the Twitter purchase with loans secured against Tesla stock. That $14B worth of twitter stock was then owned by Musk and he also had a loan.
This was an all stock purchase, so xAI stock was exchanged for equivalent value of Twitter stock (keep the old name to keep it clear). Now Musk's twitter stock that he bought with the $14B will become the equivalent value of xAI stock, and he still has the loan that bought it in the first place.
Unless $14B of stock has been sold somewhere to repay the loans they still exist.
Edit: just an addendum. Personally I think stock-for-stock trades should be illegal. Force the parties to move through cash. There's too much smoke and mirrors hidden by skipping steps. In this case xAI should have had to raise the capital to purchase X. If it can do it through selling stock so be it, but it's not a wholely internal affair.
To know how exactly it works, we'd need to know details that aren't public.
But just speculating, if the creditors value the combined xAI+X higher than just X, then there is room to transfer the loan to the new company and away from Tesla.
But whatever the details are, Elon isn't an idiot when it comes to money. He definitely has advisors who cooked up the optimal way to profit from the AI hype.
And the essence of that is that Tesla shareholders will be left holding the bag, while Elon utiizes X/xAI to capitalize on the hype.
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Is this so the loans secured with X stock can't be called in, forcing Elon to sell the collateral to pay back the loan?
Sure seems like a bullshit business move to retain control of Tesla.
X is a private company, there's no stock. It was secured with Tesla stock.
So the bullshit machinery is now AI driven bullshit machinery. What if AI finds it too vile and deletes itself.
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this post was submitted on 29 Mar 2025
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