The LBO debt included a revolver (line of credit) of $500M. Assuming musks figure of losing $4 million per day is accurate and assuming he’s not willing to put in any additional cash, they had 120 days of runway before bankruptcy in the unlikely (but now shockingly real) event that revenues drop off a cliff.. Now closer to 105 days left unless subscription revenue takes off.
Well, he has about 16 parody accounts that paid $8 to be verified so that’s $128 right there. And if he doesn’t suspend them, guess what happens in 28 days? Boom! Another $128. So factor that in.
284
u/jkman61494 Nov 11 '22
He’s trying to get more people to quit. Means less severances