Do You Really Think Elon Musk Is Stupid? - Smart Money Seed


Do You Really Think Elon Musk Is Stupid?

Okay I know we don't usually get too in-depth on investment talk, but I argue that this is more about having good sense and business in general rather than investing advice -- although yes it is an analysis of an investment option.

Tesla CEO Elon Musk, possibly the brightest mind in the universe, tweeted on August 7th that he was considering taking Tesla private.

Shortly thereafter, Elon was under a great deal of scrutiny for smoking weed and drinking whiskey on Joe Rogan's podcast which depleted Tesla's value by about 10%.

Now Elon has been charged with fraud and sued by the SEC for his tweet. And yes, you guessed it, Tesla shares are down another 13%.

Assuming Elon still intends to take Tesla private, he's depleted about 25% of Tesla's value. Doesn't that destroy a huge chunk of Elon's $20 BILLION net worth? Yep, he's lost about $1 billion.

But let's step back for a second and think about how this all started. Elon is an inventor and an innovator, not a particularly savvy or passionate businessman. This is complete speculation, but I would imagine Elon doesn't like having to constantly rationalize his decisions and actions to a board and investors.

So maybe he was actually telling the truth about his intention to take Tesla private. And what have his actions done to the chances of that actually happening? HE'S LOST $1 BILLION, SO HE CAN'T POSSIBLY AFFORD TO TAKE TESLA PRIVATE, RIGHT??!?!?!!

Tesla has 170,593,000 shares outstanding according to NASDAQ. Elon destroyed $100 per share in value with two very simple actions.

Elon just saved himself $17.0593 BILLION on the purchase price of his own company assuming he sticks with the initial 20% premium.

So do we really think Elon Musk is stupid? Or do we think this man just saved himself $16 billion on a decision to make himself happier by ridding his life of annoying shareholders and board members?

But the media continues to portray Elon's actions as catastrophic to Tesla's overall well-being, and Elon plays their game with his statements about how he's "deeply saddened and disappointed."

On the inside, I believe Elon doesn't give a shit about what you think or about what the media thinks. He just saved $16 billion, and my man is laughing all the way to the bank.

Cutthroat, don't give a shit attitudes and actions like this are why the world has billionaires and then the rest of us, who wouldn't even consider going to such great lengths to build or preserve wealth, dreaming about the lives these people actually live.

Keep getting your money, Elon. You can count me as one of the few rooting for you.

DISCLAIMER: This is completely based on a theory I made up in my own head and is probably not factually true in any way. Plus, Elon may have just been on acid this whole time which pretty much just throws my theory out the window.


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