“It’s been raining money on fools for too long,” the billionaire scolded on Twitter, forgetting a little quickly that he largely benefited from this magic money. Never stingy with little polemical phrases, Elon Musk stood out Friday for another outing on Twitter, as the clouds of recession gather over the United States. “It’s actually a good thing. It’s been raining money on fools for too long. Some bankruptcies have to be done “slice the billionaire.” Plus, all the Covid stuff at home has got people thinking they don’t really need to work hard. Waking up will be a rough one!” he warns. The opinion of the boss of Tesla and SpaceX is all the more controversial as the entrepreneur has largely benefited from the abundance of liquidity in recent years. A money, sometimes described as “magical” by its detractors, which made the title of Tesla climb on the stock market to impressive heights. It is the incredible valuation of the car manufacturer, more powerful than Toyota despite very low deliveries in comparison, which made Musk the richest man in the world. In 2009, the entrepreneur took advantage of a loan of $465 million through a massive federal stimulus package after the global financial crisis. A shower of money that helped keep Tesla afloat and finance the development of the Model S. Cash flow long in the red Tesla was also able to take advantage of significant tax breaks to release its electric vehicles. As the Guardian points out, the company also derives the majority of its revenue not from the sale of vehicles but from the resale of carbon credits to its rivals. A way of reminding that Tesla does not necessarily have such strong backs, given its business model. The company has not been spared by the cold snap on the markets in recent weeks, losing a third of its value since the beginning of the year, while Musk’s intentions on Twitter still remain unclear. Elon Musk also assured that “companies which by nature have negative cash flows (that is destroyers of value) must disappear in order to stop consuming resources”. Again, the Guardian recalls that Tesla was only profitable in 2020, racking up billions of dollars of negative cash before that. Again, low interest rates and “magic money” have largely helped the company avoid going under. As for its other major company, SpaceX, it depends on public contracts with NASA or the United States United States.Thomas Leroy Journalist BFM Business
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