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Comment by evilos | Hacker News Reader

Is it likely at all that Elon will sell shares to fund the Twitter purchase or will it be more of borrowing against shares kind of situation? Not looking like great collateral at the moment.

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He can also raise money from other investors in the private market.

There have been indications that Tesla may announce a stock buy back. Several large investor in Tesla have been making the case for it. S&P just upgraded their credit rating. If Elon did need to sell more that would mitigate any negative effects.

Long term none of this Twitter drama matters. The PE of Tesla is incredibly low right now and the company is super healthy with no real signs of slowing down.

A P/e of 95 is low?

See you in 2117 :)

It supposed to be the the moon.

https://www.forbes.com/sites/investor/2020/12/23/tesla-to-th...

Relative to historic P/E yes but more importantly still growing fast and if you look at 3Q earnings annualized it's in the low 40's and forward P/E based on conservative estimates is in the 30's.

mostly borrowing. and the financing was set up months ago. that's also why the banks who financed it are getting screwed: they wrote high yield debt at a SOFR + Xpts spread that is way smaller than the HY market is currently demanding so uhh good luck selling that at par lmao

(p.s. before anybody goes off about elon screwing them or whatever this is not the only case, same thing is happening with citrix rn)

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