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this post was submitted on 20 Aug 2024
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My understanding is the money he used to pay for Twitter was from loans by banks, where they got mostly Tesla stock as collateral. Musk can pay back the loan to get the stock back, or the banks can sell it. This is done because loans aren't taxed, but selling the stock would be. Now the banks are stuck with stocks that are worth less than the loans they gave out, so they are at a loss.
AFAIK that was the original plan, but wasn't the final outcome.
Elon doesn't have anything tying up his stock on the purchase anymore. It's one of the reasons for why he sold so much when he did the purchase.
He may still have to sell stock to keep it alive, but it's not collateral.
edit: Here's when the change happened
https://www.theverge.com/2022/5/25/23141940/elon-musk-tesla-twitter-margin-loan-buyout-deal
Just to reiterate what I said above though, he still has loans, they just aren't collateralized by Tesla. He could lose twitter if he doesn't pay the loans, and the only way he can pay them is either twitter making money, selling or collateralizing tesla/spacex shares, or finding additional funding.
If Musk doesn't pay the loans the banks can take Twitter off him, but then they're stuck with Twitter.
It's always lost money, but now Musk has driven off the advertisers and many of the high prestige users; got stuck in a bunch of pointless lawsuits he's going to lose; and run up a lot of debt by refusing to pay people.
And Musk knows this. The banks are fucked.
They might be stuck with Twitter, but then they could hire someone who doesn't run off the advertisers and maybe turn it around for a smaller loss.