Part 5/9:
Elon Musk’s financial strategy has involved substantial borrowing—specifically around $11 billion for Twitter acquisition—leading to high debt servicing costs and a decline in Tesla's market cap from over $1.1 trillion to approximately $500 billion, roughly halving its value. Rubenstein explains that market skepticism is justified to some extent, as selling Tesla shares to fund Twitter has raised fears among investors about Musk’s focus.
He warns that Musk might face the unpleasant scenario of purchasing Twitter debt at a discount, then potentially bankrupting the company, which would wipe out equity and result in significant losses, including for Musk himself. The market's mistrust reflects concern over Musk’s capacity to juggle multiple giant enterprises effectively.