TravisDec 22, 2022

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

Show threadTravis

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

Dec 22, 2022 at 3:19pmWeb
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.