Is the conquest of Mars in danger? Elon Musk chose Twitter instead of SpaceX?

Last week, the media reported that Elon Musk had finally taken over Twitter, and the company’s management agreed. This real “soap opera” lasted several weeks and ended happily for the billionaire. Analysts were skeptical about how such a large operation would be funded. Now everything is actually clear. In addition, there is a real danger that Mask will face the threat of a planned conquest of Mars due to lack of funds to invest in Space X.

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Financing the purchase of Twitter

Buying Twitter costs the billionaire $ 44 billion. This is a really large amount to be seen in Musk’s wallet. Observers believed that Tesla’s CEO would have to sell a majority stake in the company to finance such a big deal. One of the ideas was to take a loan. We already know what decision Mask made.

Last week, the billionaire sold $ 8.5 billion worth of Tesla shares. This means that the head of the electric car company saved 4.4 million shares on Tuesday and Wednesday, and 5.2 million shares on Thursday. Such information is provided by the Securities and Exchange Commission, the American equivalent of the Polish Financial Supervision Authority.

Does this mean that Mask got rid of all Tesla shares? No, but he owns only 16% or about 163 million shares in the company. This means that the billionaire is still the largest shareholder in Tesla. Investors were upset by the news that the manager sold shares. After such information, stocks usually react with large drops. If you look at the monthly chart, you can see a decline from about $ 1,100 per share to just $ 900. Therefore, we are talking about a 20% reduction in value. As a consolation, Musk tweeted Thursday night that he has no plans to sell TSLA anymore.

Conquest of Mars Tesla

However, it should be added that the sale of Tesla shares alone is not enough to finance the purchase of Twitter. Musk also negotiated to help finance the acquisition of the banks, and it was successful. The billionaire assured financial institutions that he would reduce the company’s costs, for example, by reducing the salaries of the board and the manager. He also intends to develop new ways for tweets to make money for the company.

How did Musk convince the banks to help? The billionaire said Twitter has generated enough cash flow to manage the required debt. Thus, Mask borrowed $ 25.5 billion of which:

  • $ 13 billion provided by Twitter,
  • The $ 12.5 billion margin was secured by Tesla shares.

The rest of the money to finance Twitter will come from the billionaire’s own funds.

Is the conquest of Mars in danger?

According to Forbes, Musk is currently worth about $ 268.2 billion. This makes him the richest man in the world. However, the property should not be confused with cash on hand. After all, Musk will not sell all the shares of Tesla or get rid of other investments so that the money is in his account. After buying Twitter, the billionaire’s accounts will no doubt be less than that. So what will happen with the investment in Space X?

Flight to the Mars Star ship
Photo Starship SpaceX

The company that is supposed to help send the mission to Mars is still reminiscent of a startup form. The company is still seeking funding from private investors to finance a spacecraft project that will send astronauts to Mars.

Recall that SpaceX, for example, is not as profitable as Tesla. However, this is not the case when the company does not make any profit at all. For example, SpaceX has an agreement with NASA to launch Crew 7, 8 and 9. In addition, the company will conduct commercial space flights and deploy StarLink Musk broadband satellites. Will the proceeds from such activities be enough to fund research and development to reach Mars? I doubt it.

Large sums of money are being “eaten” by astronauts to finance spacecraft technology to reach the Red Planet. Therefore, the conquest of Mars may be threatened or postponed again. Recall that in 2020, Mask said that the SpaceX Starship rocket is unique and ambitious, but still in development. This is important for the survival of the company. Some observers have noted this in the end Twitter could mean less agility for SpaceX.

Conquest of Mars

Another argument is probably that Mask is less involved in what happens in SpaceX. The billionaire has repeatedly talked about how he will change Twitter and what he will offer to the board to further improve the portal. However, this requires appropriate measures and, above all, a great commitment. Of course, Mask will do everything not alone, but with specialists. However, he must make sure that everything goes according to his wishes. This raises concerns about the conquest of Mars and the less billionaire interest in SpaceX. Contrary to appearances, 2029 is not so far away, and then the conquest of Mars may take place. This is a new date set by the billionaire a few weeks ago.

There is another argument written by the media. SpaceX operates in a market that is strictly regulated by the US government. Twitter, in turn, is a portal where we can find politicians and officials with all the options. There is a kind of blackmail option. Politicians or officials can use SpaceX as a “hostage” to influence what Mask intends to do on Twitter.

Source: cnet, reverse, reuters, futurism

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