All As "Musk's Folly" Now Approaches A Wipe-Out, Of $200 Billion In Market Cap At Tesla -- In Three Elapsed Days...

I really don't have a lot more to say, here: Tesla is off sharply again this morning on the NASDAQ, trading down to $836 and change (from over $1,000, late last week).

That makes it over a $200 billion (that's with a "B", folks!) destruction in shareholder equity at Telsa, just since Monday morning -- off almost 20% on the week, so far.

I'd particularly note that as an all cash offer, Mr. Musk's obligation does not decline -- even if Twitter is worth far less by closing time, based on its quarterly results (or lack thereof).

The chief culprit (at Tesla) is the (rightful) concern that the not-so-hot Q1 2022 results announced at Twitter this morning increase the probability that Mr. Musk will see more of his Tesla shares sequestered into the margin account, by the seven multinational investment banks financing his bid -- and it looks increasingly likely that he will need to sell a large chunck of his Tesla holdings, to pay off his equity share of the $44 billion purchase price.

So. . . net, net -- I'd put it at about even odds. . . like 55/45 (against), that one way or another, this deal doesn't close in 2022 -- or perhaps, at all.

He is, if nothing else, prone to rash decisions -- and then, backing out of the same. As he showed in his losing motion, in federal court yesterday, in Manhattan -- about his 2018 SEC agreed settlement. He must live with that, and it too will put pressure on him, in the slow march toward any potential Twitter closing.

We shall see. Onward, grinning. Ever, grinning.

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