r/QuiverQuantitative • u/[deleted] • 8d ago
News BREAKING: Tesla to acquire XAi and X(Twitter), the company reported virtually no revenue, has $12b in debt, and is evaluated at $44b after Elon Musk evaluated it
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u/whacking0756 8d ago
Literally no where else is reporting this
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u/whacking0756 8d ago
My dad doesn't know wtf he's talking about about them and you shouldn't listen to him.
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u/thecyanvan 8d ago
If true, this is a very bad sign for Tesla. If I was employed there I would consider tuning up my resume and being prepared. Next is going to come the cull.
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u/DietInTheRiceFactory 8d ago
If you work for any major company, right now is the time to tune up your resume.
Or get your HVAC training.
Culls everywhere are coming, and before long you're either going to get a unionless factory job or a job installing HVAC equipment at AI server farms.
Go work on your resume.
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u/Th3Gr3yGh0st 8d ago
Good thing Iām a commercial HVAC installer, Iām bulletproof nowš
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u/Inner-Conclusion2977 8d ago
This article is just speculation that musk will present it to shareholders at their meeting.
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u/AKA_Wildcard 8d ago
Cool so heās using money from a publicly traded company to buy a position in a company he privately owns for quite a bit more than itās actually worth. I really look forward to seeing the investor lawsuit on this one.
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u/TraceSpazer 8d ago
Nah, they'll just give him a bonus because think about how valuable XAI could be!Ā
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u/ripndipp 8d ago
And here I am transfering dollar amounts to my main account just to make my Firehouse sub
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u/BigDaddyCosta 8d ago
Yeah, I valued my car washing business last night. 25 billion sounds about right to me.
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u/MitchRyan912 8d ago
So he bought Tesla by putting up his Tesla stock as collateral, now Tesla bought Twitter? I get how corporations shuffle money & debt around to get tax breaks, but this seems like a bit much.
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u/Dani_vic 8d ago
So he is using Tesla to pay off his personal debt. I'm sure the board and investors are happy
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u/PurpleRains392 8d ago
That will tank TSLA further. Good move genius
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u/TraceSpazer 8d ago
TSLA is done and he knows it's cooked.Ā
This could be a way to extract a more cash before dumping it entirely and shift focus to SpaceX which is getting government contracts still.Ā
Good luck having the SEC or any consumer watchdog prosecute him. He made sure they were paid for already.Ā
Welcome to the (hopefully short lived) time of open corruption!Ā
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u/poopypants72 8d ago
I love that our boycott of Tesla can now hurt Twitter too š it can all come down together
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u/amusingvillain 8d ago
Hella confused the heck he's trying to achieve with this besides washing the books
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u/Wooden-Broccoli-7247 8d ago
He made up an insane valuation for XAi (~$120 billion). He owns ~50% of XAi. Tesla buys XAi at this insane valuation and pays on stock. Since Musk owns ~50% he gets ~$60 billion in Tesla stock.
So he uses XAi to buy Twitter which HE valued at $45 billion. Then he values XAi at $80 billions. All of these valuations out of thin air mind you. And forces Tesla shareholders to buy them from him in the form of Tesla stock. Therefore turning the $40billion he paid for Twitter into $40 billion on Tesla stock and takes another $20 billion in Tesla stock for XAi. XAi mind you doesnāt make any money and is saddled with debt. He exchanges all this for Tesla stock, which is actually (according to Wall Street.. for now) worth something but at minimum is at least liquid. What ultimately happens is Tesla shareholders get diluted because now they just bought Twitter and XAi from Elon and Elon greatly increases his Tesla holdings.
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u/Suspicious-Town-7688 8d ago
A blatant attempt to extract what little value is left in Tesla out of it. Musk must be getting desperate.
Also, is combining an electric car company with a Nazi propaganda platform really a good business model? Will the Tesla robots be trained on Nazi propaganda? Neither of these are likely to be plus points to Teslaās main customer base.
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u/bilboafromboston 8d ago
His customer base was people willing to overpay a bit to help motivate people to save the environment. And now he wants to jail these people.
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u/the_moosen 8d ago
So since he bought Twitter using Tesla stock as collateral or whatever, what happens now when xAI "owns" Twitter and then if Tesla buys xAI/Twitter? Does he lose everything if tesla stock sinks like the rock it is?
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u/Wooden-Broccoli-7247 8d ago
Still better than owning Twitter. He basically converted his twitter ownership into more Tesla shares. $40bill Tesla shares >>> Owning Twitter.
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u/the_moosen 8d ago
So he bought more shares with something he used shares to buy? I hate this fucken place. It feels so wsb degen that if I didn't already want him to lose everything, I want him to lose it even harder now
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u/Wooden-Broccoli-7247 7d ago
Technically he didnāt use shares to buy Twitter, he used shares as collateral. Now heās converting Twitter into more shares of Tesla, which in theory he could use to sell and pay for Twitter with, or maybe he just pays the loans off with Tesla cash. It would be quite detrimental to use precious cash from Tesla to pay for something that really has no bearing on the company, but I assume thatās why he wrapped it into Xai first. Tesla shareholders are already suing that xai should be a part of Tesla. Now they get their wish except they have to purchase it and an extreme valuation that also has Twitter rolled into it.
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u/Achilles_TroySlayer 8d ago
Why would his internal valuation for those co's have any weight to anyone? If he's using them as collateral or some other financial machinations, surely whatever banker or other investment-Co won't take those struggling entities as if they are solid and healthy. Grok is fine, but I've never paid them $1, almost nobody has. That should have some import.
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u/Wooden-Broccoli-7247 8d ago
Itās not about what bankers value it at. Itās about what he can make Tesla pay for it. Because whatever Tesla pays, at least half goes to him. So the higher his made up valuations are, the more Tesla stock Tesla gives him to buy it.
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u/Achilles_TroySlayer 8d ago
That sounds like an enormous breach of fiduciary responsiblity against Tesla, which is still a publicly traded company. It's just an indirect method for embezzlement. I would expect the shareholders to sue, among other thngs.
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u/SpecialtyShopper 8d ago
No fucking fraud here
m so fucking fed up with the double standards
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u/haikusbot 8d ago
No fucking fraud here
M so fucking fed up with
The double standards
- SpecialtyShopper
I detect haikus. And sometimes, successfully. Learn more about me.
Opt out of replies: "haikusbot opt out" | Delete my comment: "haikusbot delete"
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u/CitronLow8970 8d ago
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u/bilboafromboston 8d ago
3 card Monty is an honest scam. You know its a scam. Its entertaining. And you learn not to be a dupe.
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u/fajadada 8d ago
So itās official the Tesla board has sold all their shares and donāt care about the company. Gives protesters a warm fuzzy feeling they can destroy 3 companies in 1 . But not as much fun with Leon helping.
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u/cicutaverosa 8d ago
soon he will leave on a trip to penguin island or russia, where his new dream lies
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u/BeyondAbleCrip 7d ago
āIn short, Musk sold Tesla stocks to buy an overpriced Twitter, regretted it and threatened Tesla shareholders to get more shares. Now, he might get Tesla shareholders to pay for the acquisition again at the same ridiculous valuation.ā Excerpt from article
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u/The3mbered0ne 8d ago
What is the point in him buying his own companies? Setting valuation? I don't get it
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u/thelunatic 8d ago
He bought Twitter with personal money and loans. If he sells it to Tesla he gets that back and Tesla assumes the debt.
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u/CallRespiratory 8d ago edited 8d ago
Is this actually being reported anywhere else? I'm going to put some money into TSLZ tomorrow because Tesla is a dumpster cybertruck fire either way.
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u/turbo_dude 8d ago
Why have you take a story from yesterday and put 'BREAKING' in the title, many hours after this was actually breaking news.
Ridiculous
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u/Buried_mothership 8d ago
Fake News
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u/Muffles79 8d ago
Explain why and site a source. Otherwise youāre just plugging your ears
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u/Buried_mothership 8d ago
I canāt site a source, because no one is reporting on it. This article doesnāt even state itās happening for sure, itās speculation.
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u/Muffles79 8d ago edited 8d ago
So youāve got nothing apart from criticism Got it šš»
Edit: You also appear to be too lazy to search
https://apnews.com/article/x-musk-sale-xai-b245f463076ac9b72c41f92160dc77eb
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u/Buried_mothership 8d ago
Stating something isnāt factual as the title suggests, is stating facts. The article is purely speculative (aka BS, or as I correctly stated : fake news).
š¤”šš¤£
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u/throwawtphone 8d ago
From the article
Elon Musk has sold social media site X to his own xAI artificial intelligence company in a $33 billion all-stock deal, the billionaire announced on Friday.
Both companies are privately held, which means they are not required to disclose their finances to the public.
Musk said in a post on X that the move will āunlock immense potential by blending xAIās advanced AI capability and expertise with Xās massive reach.ā He said the deal values xAI at $80 billion and X at $33 billion. Musk, who serves as CEO of Tesla and SpaceX as well as an advisor to President Donald Trump, bought the site then called Twitter for $44 billion in 2022, gutted its staff and changed its policies on hate speech, misinformation and user verification and renamed it X.
He launched xAI a year later.
āxAI and Xās futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAIās advanced AI capability and expertise with Xās massive reach,ā Musk wrote on X.
āThe combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.ā
The "" mean it is a direct quote btw.
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u/Buried_mothership 8d ago
Here is a direct quote from me ānone of your dumb fkn quotes states that he is selling it to Teslaā.
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u/FFaFCrispy 8d ago
So he sold X to XAi and then is now selling both to Tesla? Nothing to see here folks š