There could be no better indicator that the end is near than the absurd Tesla cult bubble, and the even more preposterous announcement yesterday by Elon Musk that he’s going to do a $81 billion LBO (counting the debt) for which “financing is secured”.
Not even in this Bubble Finance besotted world is anybody—even the current P.T Barnum of fraudulent finance—-going to raise $81 billion to LBO the cash bleeding, operationally busted heap of lies and ultra-hype known as Tesla. Yet that’s what it would take at the proffered $420 per share—–$71 billion for the stock and another $10 billion for the debt, which is protected by change of control put clauses at 101% of par.
Not withstanding the utter impossibility of the Musk LBO (see more below), the stock traded up $7 billion yesterday; and that, folks, is the clanging warning bell for the coming implosion of this latest and greatest central bank fostered bubble. The tip-off is that even the slightly more sober gunslingers in the bond pits weren’t buying Elon’s latest scam.