tag:blogger.com,1999:blog-1527840491496268397.post9138738524247544923..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: Some Gems from Discovery Elon's Deposition in the Tesla / Solarcity LitigationUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1527840491496268397.post-66742449149955831942019-11-12T11:33:18.443-07:002019-11-12T11:33:18.443-07:00They are in this position because they fund their ...<i>They are in this position because they fund their lifestyles and other "investments" by borrowing against their stakes. Obviously there are no dividends from SolarCity, SpaceX, or Tesla (all unprofitable) to pay for things like private jet travel or palatial Los Angeles compounds. It is a very wobbly arrangement that makes their ability to stay in control of the enterprises contingent and path-dependent on the stock price.</i><br /><br />What is the average Joe Schmoe supposed to make of this? -- you know, the kind of guy who if he doesn't pay his rent the sheriff comes and throws him and his belongings out onto the street.eahilfhttps://www.blogger.com/profile/11917658744700868462noreply@blogger.com