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xAI has acquired X, xAI now valued at $80B

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Re: xAI has acquired X, xAI now valued at $80B

#101

Post by footlose_3815 »

oskarkk wrote: post #91
toomuchtodo wrote: post #50

Earlier quoted context omitted.

67% of Americans would not consider buying a Tesla, new poll says - https://electrek.co/2025/03/28/most-americans-would-not-cons... - March 28th, 2025 Tesla (TSLA) Q1 delivery consensus: 377,000 EVs – worst performance in 2 years - https://electrek.co/2025/03/28/tesla-tsla-q1-delivery-consen... - March 28th, 2025 Tesla is banned from Canada EV rebate program, gov freezes suspicous $43 million in rebates - https://ele…

It's true that Tesla shares recently declined, but the context is important: during 2022-2024 Tesla shares were trading between $100 and $300 (with high volatility), in October 2024 they were at $200-$250, then after elections they skyrocketed to the all time high of $488 (for no fundamental reason), and since then the stock is falling. It's $263 right now - after the latest declines the stock only returned to the pr…

We've only witnessed two months of this. Imagine four years of it.

Re: xAI has acquired X, xAI now valued at $80B

#102

Post by gruez »

mayneack wrote: post #75
bhouston wrote: post #29

He has done this move before with Tesla buying Solar City. When you do a deal with yourself you can assign any value you want to assets, it isn’t a competitive process. In the previous case Solar City was dying but its acquisition by Tesla was pitched as a great synergy. https://www.businessinsider.com/solarcity-tesla-energy-belea... There were a few lawsuits from Tesla shareholders about the acquisition regarding se…

Surely a theoretically disgruntled xAI shareholder is going to have a harder time here since they're both private companies and given Elon's proximity to any potential regulators.

Company directors are generally given wide latitude in what they can do without breaching fiduciary duty, so such lawsuits were always going to be an uphill battle.

Re: xAI has acquired X, xAI now valued at $80B

#103

Post by perihelions »

toomuchtodo wrote: post #23
minimaxir wrote: post #3

The SEC would likely have a field day with this, if there was still a functional SEC.

The SEC DOGE was in today? https://www.reuters.com/world/us/us-securities-exchange-comm...

Ongoing thread here,

https://news.ycombinator.com/item?id=43510093

Re: xAI has acquired X, xAI now valued at $80B

#105

Post by refulgentis »

rayiner wrote: post #80
bhouston wrote: post #29

He has done this move before with Tesla buying Solar City. When you do a deal with yourself you can assign any value you want to assets, it isn’t a competitive process. In the previous case Solar City was dying but its acquisition by Tesla was pitched as a great synergy. https://www.businessinsider.com/solarcity-tesla-energy-belea... There were a few lawsuits from Tesla shareholders about the acquisition regarding se…

Tesla bought Solar City for $2.6 billion, and now it looks like the Tesla Energy division had about that much in net income last year alone.

Solar City was a debacle, it died immediately. Tesla's story in court was they were about to go bankrupt, and it was a financial necessity to redeploy all Solar City assets, including all employees, to Model 3 production.

It breaks my heart because my rust belt hometown got a substantial investment from the state they had been chasing for a couple decades.

$700M of the Buffalo Billion went to a Solar City facility, Elon even said they were going to build the solar roofs there!

New York State didn't dare pick a fight with him as the factory set empty for years.

Full story via Bethany McLean, 2019:

https://www.vanityfair.com/news/2019/08/how-elon-musk-gamble...

Re: xAI has acquired X, xAI now valued at $80B

#106

Post by foobarqux »

rayiner wrote: post #80
bhouston wrote: post #29

He has done this move before with Tesla buying Solar City. When you do a deal with yourself you can assign any value you want to assets, it isn’t a competitive process. In the previous case Solar City was dying but its acquisition by Tesla was pitched as a great synergy. https://www.businessinsider.com/solarcity-tesla-energy-belea... There were a few lawsuits from Tesla shareholders about the acquisition regarding se…

Tesla bought Solar City for $2.6 billion, and now it looks like the Tesla Energy division had about that much in net income last year alone.

Putting aside the fact that you can't justify fraud by post-hoc outcomes (Shkreli and SBF also claimed that they didn't commit fraud because they would or did win it back), I doubt any of the Tesla Energy division income (even assuming the accounting is okay) is a result of businesses that can be traced back to Solar City.

I suspect most of the business is battery storage and the Powerwall was introduced by Tesla before the acquisition.

Re: xAI has acquired X, xAI now valued at $80B

#107

Post by [deleted] »

toomuchtodo wrote: post #16
adharmad wrote: post #9

What is the play here? Using money invested in xAI and its inflated valuation to bail out the X investors?

It bails out Elon and means his Tesla shares (borrowed against to purchase Twitter) won’t be liquidated as Tesla’s share price continues to decline, using xAI investor funds. He uses hype and sentiment (inflating valuations) in the capital markets to always stay slightly ahead of consequences.

[deleted]

Re: xAI has acquired X, xAI now valued at $80B

#108

Post by ein0p »

mtmail wrote: post #33

Can we speculate if X's CTO didn't like the reorg? 3 days ago "X’s director of engineering, Haofei Wang, has left the company " https://news.ycombinator.com/item?id=43470613

More likely Musk liked xAI's CTO more than X's CTO, and parted ways with one of them. Which is his prerogative, as the owner of both companies. I'm sure Haofei would love to be the CTO of one of the strongest AI models in existence. I would, if I were in his shoes.

Re: xAI has acquired X, xAI now valued at $80B

#109

Post by LPisGood »

dustingetz wrote: post #13

if this didn’t happen, how much more would TSLA have to drop for the $12B debt to get margin called given it is collateralized by TSLA? IIUC what has happened here is the debt has been repaid by selling xAI equity? Wasn’t xAI constructed in the first place to poof some magic money from thin air to give to unhappy Twitter investors and keep them happy?

It has dropped pretty low (relatively) at some points since the purchase - probably a fair bit under $100 to trigger any margin call.

Re: xAI has acquired X, xAI now valued at $80B

#110

Post by mdorazio »

rayiner wrote: post #80
bhouston wrote: post #29

He has done this move before with Tesla buying Solar City. When you do a deal with yourself you can assign any value you want to assets, it isn’t a competitive process. In the previous case Solar City was dying but its acquisition by Tesla was pitched as a great synergy. https://www.businessinsider.com/solarcity-tesla-energy-belea... There were a few lawsuits from Tesla shareholders about the acquisition regarding se…

Tesla bought Solar City for $2.6 billion, and now it looks like the Tesla Energy division had about that much in net income last year alone.

And how much of that is solar instead of Powerwall and Megapack? They don’t break it out in filings unless I missed it.
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