TL;DR

Tesla’s stock price, propped up by hype, is allegedly being used by Musk to fund his other ventures, leaving investors vulnerable to a potential crash reminiscent of past financial crises.

Story

Imagine a house of cards built on hype, held together by a billionaire’s tweets. That’s the Tesla story some are whispering about.

Our protagonist, Elon Musk, needs cash. Lots of it. To fund his other ventures—Twitter, xAI, maybe even a TikTok bid—he’s allegedly leveraging Tesla’s inflated stock price like a personal ATM.‣ Leveraging: Using assets (like stock) as collateral for loans.

He sells Tesla shares, the price dips, he buys ‘real’ companies. Banks, entangled in this web, reportedly trade regulatory favors for a piece of the Musk pie.‣ Regulatory Favors: Relaxed rules that benefit businesses.

Meanwhile, Tesla’s bleeding. Resources are allegedly diverted to Musk’s private ventures. Conflicts of interest fester like a hidden infection. Optimus, Tesla’s robot project, is supposedly intertwined with xAI, potentially siphoning profits away from Tesla.‣ Conflicts of Interest: Situations where personal gain could override objective decision-making.

Sound familiar? It’s a tale as old as Wall Street itself. Enron, 2008—inflated valuations masking rot within. The common thread? Greed, dressed up in innovation. And when the music stops? Retail investors are left holding the bag.

Remember those ‘guaranteed returns’ crypto promised? This isn’t so different. It’s faith masquerading as finance, with a dash of celebrity worship thrown in. The real question isn’t if the house of cards will fall, but when. And when it does, who will be buried underneath?

Advice

Don’t be fooled by hype. Research before investing, and remember: if it sounds too good to be true, it probably is.

Source

https://www.reddit.com/r/stocks/comments/1iq3s4q/how_musk_is_using_tsla_as_a_piggy_bank/