> Elon is margin called by year end is roughly 40% according to option prices
The margin loans will almost certainly be replaced with outside equity prior to closing.
The margin loans will almost certainly be replaced with outside equity prior to closing.
Do you think more people bought Tesla 5 years ago, or in the past 1.5 years? Because the latter folks are underwater.
First, given the recent precipitous fall in the NASDAQ, there's speculation that Musk will lower the offer (which seems quite reasonable).
Second, I'm not sure there's any reason to assume these new equity investors are paying the share price Musk is paying. If Musk pays $54.20 a share, and needs to raise 25% of the acquisition cost by issuing new equity, he could sell 49.99% of the new company at say, $30 a share to his partners and still raise the required capital.