Here is my best guess at what will actually happen: Elon will find a friendly investor who will value the equity at non-zero, despite creditors needing to write down the value of the LBO debt.<p>That friendly investor has to know they are shoeling the money into an ongoing dumpster fire. But it will hold off the creditors for one or two quarters.<p>I am trying to figure Elon's debt capacity. The most recent info I found is months old: <a href="https://www.forbes.com/sites/johnhyatt/2022/04/28/elon-musk-is-about-to-have-more-pledged-stock-than-these-31-other-billionaires-combined/" rel="nofollow">https://www.forbes.com/sites/johnhyatt/2022/04/28/elon-musk-...</a><p>That article claims he has already pledged more than 90% of then-more-valuable Tesla shares against loans. When do margin requirements start to pinch?
TIL the etymology of <a href="https://en.wikipedia.org/wiki/Pig_in_a_poke" rel="nofollow">https://en.wikipedia.org/wiki/Pig_in_a_poke</a><p>When the banks holding the debt are taking a bath marking it to market, investing in equity of the same firm seems ... brave.