" — a holding company that he used to buy Twitter — which he has suggested could be used to house all of his various companies. So under the guise of synergies between Tesla — particularly the AI technology behind its controversial Autopilot systems — and Musk's vision for this all-encompassing app, he could direct Tesla to"invest" in Twitter to get access to potentially billions of its cash and resources.
If this happened, Tesla investors may or may not know how much it supports Twitter. Unlike Tesla's 2016 takeover of SolarCity, which was done with reasonable transparency, Tesla set up its Shanghai operations in 2019 as an unrestricted subsidiary with very limited visibility. Because of this arrangement, Tesla's investors only get a piecemeal snapshot of the China business' contributions to the overall company.
Tesla could create a similar special purpose entity, or SPE, for example, to invest in Twitter, but this time to help shield Twitter's struggling operations and failing financial condition, as well as its drain on the parent company, from investors. After all, tracing Tesla's cash is already tricky. Roughly a third of Tesla's $20 billion in cash is held overseas,, where it stays.
While siphoning money to support Twitter is a controversial strategy, it wouldn't significantly impair Tesla's financial condition — at least in the short term. At present, Tesla has very little debt and the company recently netted an investment grade credit quality rating from S&P Global. The company's debt-to-EBITDA ratio, an indication of how well cash earnings may support a company's debt, and a key measure of financial stability — is just 0.
The trouble is, Tesla's future prosperity has become less certain. If Tesla's operations continue to struggle to sustain profits and cash flow because of deteriorating business conditions, as I suspect, its healthy cash cushion could start to shrink just as Elon starts draining cash to save Twitter.Elon Musk has been celebrated as the richest man on the planet mostly by making Tesla the most valuable car maker ever.
Source: News Formal (newsformal.com)
Clearly has a media campaign against elonmusk .
I think business Insider has a better chance of collapsing than twitter, but, do continue with your theoretical nonsense…
If BI collapses would anyone miss it?
It would appear your TDS has cleared up, however, now you suffer from MDS.
You clearly are not insiders.
Tell me you’re drunk on confirmation bias without telling me you’re drunk on confirmation bias.
Don't bet on either collapsing!
Yawn
Ballx
Seriously, this is what you post. Why not the suppression of information to the people. Do not even try to spread the lies regarding the use of twitter and Tesla or anything else Elon Musk decides to create. We, the people will not allow this to happen.
Are you guys bored? 😂😂😂
This is embarrassing . You really look desperate with your ridiculous lies
You all really want this man to fail, don't you? byanymeansnecessary
Good article.
The odds of BI collapsing before either of Twitter or Tesla are much higher. Time to repurpose your company as a toilet paper manufacturer
Tabloid / partisan journalism at its worst.
sexygirl798 I hope so
Unfollowing u because of this story
Every month record deliveries for Tesla, why would it collapse because of Twitter?
*When Twitter collapses
ItWasACoup Tesla gets a lot it tax payer subsidies
Twitter will collapse. Tesla will not as the capitalist government is giving large failing companies like Tesla free money for them to waste on delivering sub par vehicles. This next year will be difficult for elon and his army of desperate loser boot lickers.
This is really embarrasing. Now more than ever before i just want that media as we know them simply disappear.
You guys seems so desperate?
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