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Comment by lvl102 | Hacker News Reader

Elon backing out because he realized he will lose a lot of money on this because his TSLA shares are also plunging as a _direct_ result of his actions.

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The whole stock market is plunging, is this also a “_direct_ result of his actions”?

Some people seem to think that Elon == "The Market". I wouldn't be surprised if you'd get a "Yes!" as the answer.

Some other people seem to think that the market is crashing because crypto.

What happened to good old fundamentals... earnings and rates? Sigh.

AFAIK crypto is following the regular markets. As a crypto fanboy I do not see a problem on the crypto territory.

Other than Luna perhaps, which shook the trust in stablecoins. If crypto market didn't go down significantly, Luna would have still been probably up and stable.

But one might also argue that what happened to Luna now might have prevented a catastrophe MUCH bigger in the future though.

tesla stocks are crashing way more than all the other stocks tho

Crazy theory: Tesla stock is crashing, Musk used hos Tesla stock in his financing of the Twotter acquisition (security against loans and what not) and cannot secure the funding now. Having a 1 billion "fine" to pay if the deal falls through, he is now looking for an easy way out, hence trying to find something "material" in Twitters numbers.

This isn't true

S&P 500 down 18% from 52 Week High

Vanguard total stock market down 20% from 52 week high

Tesla down 40% from 52 week high

Sure seems true that it has crashed more than the stock market in general. And guess what, on news that he might pull out of the twitter deal, TSLA up 6% in pre-market trading at the moment...

Yes that's correct, on average TSLA is down more then SPX. But you cannot compare a index to a single stock. Since you'll have stocks that are also up.

Compared to the other leaders weight wise in the SP500 (AAPL, MSFT, GOOGL, AMZN, etc) TSLA is down about the same.

No, looks more like 20-25% for the others vs 40% for tesla.

That is completely incorrect. TSLA is holding up quite well. Take a look at SHOP for example. Nov last year it was $1700 now it's $350. TSLA was $1200 and now it's $750. It's holding up really well compared to some others.

"_direct_", Tesla is way overvalued and we all know it. Where is the cybertruck, roadster, semi and FSD? All promised years ago and the only real progress seems to be on a nutured cybertruck.

It’s direct because (1) he is selling and collateralizing his shares, and (2) he is also taking on a role to overhaul Twitter that’s going to take time away from Tesla.

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