Travis

The story of Musk is just an impossibly cringe comedy of errors, and not just his.

At the time of the twitter acquisition, Tesla had bought $1.5b worth of bitcoin at roughly 36k, holding it on their balance sheet for a massive loss. Truly hideous unforced error, done for memes.

Bankers nonetheless decided to underwrite the CEO who made this decision to the tune of $12b worth of unsecured debt to LBO a growth tech company, which is an equally absurd idea.
1/2

Dec 22, 2022 at 3:19pmWeb
Show threadTravisDec 22, 2022

Meanwhile, Standard and Poor adds Tesla to SPX despite the fact that it’s one of the most overvalued companies of all time, with no reasonable path to ‘growing into’ their valuation.

And mom and pop DCA into the bubble as society whispers “just buy and hold, you can’t time these markets.”

Elon may be this mania’s avatar, but the mania itself splashes onto us all, and the cascade of damage that results from all this has only just begun.

2/2

Show threadChaosDec 22, 2022
@coloradotravis do we know how S&P decided on adding?
Show threadTravisDec 22, 2022
@chaos I’m sure they have some process, which has clearly failed them.
Show threadeigenman Dec 22, 2022
@coloradotravis Has TSLA sold any of that bitcoin since?
Show threadTravisDec 22, 2022
@eigenman we don’t know really — not last I looked.
Show threadalpakaDec 22, 2022
@coloradotravis the sad part is society has been through this playbook time and time again, yet people in aggregate never learn the lesson.
Show threadtouch fluffy tailDec 22, 2022
remember when everyone suddenly became expert virologists? this is you right now but for finance
Show threadTravisDec 22, 2022
@fluffy well it’s been going on for years just not here.
Show threadTrading Places ResearchDec 22, 2022
@coloradotravis The memes were super-important because it jacked up the stock price and triggered his share deal.
Show threadTravisDec 22, 2022

@TradingPlacesResearch Yep, whole thing was a con.

What I find particularly delicious is the fact he appears to have believed the con, and is getting his ass handed to him.

Show threadTrading Places ResearchDec 22, 2022
@coloradotravis That's what happens when you surround yourself with people who tell you every brain fart is genius.
Show threadTravisDec 22, 2022

@TradingPlacesResearch

Indeed. One of the ways that success can beget failure if one doesn’t take care to keep oneself open to the naysayers.

Show threadmattgDec 22, 2022
@coloradotravis $TSLA down 34% in just the _last_five_days_ is... magnificent.
Show threadTravisDec 22, 2022
@mattg it’s really incredible