Elon Musk's Petroleum Haircut
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| This hair salon has a certain ... Musk |
Lose a Billion Bucks Much?
If you're like 99.9999% of humanity, you can say "Mmmm ... not so much."
Well, don't cry too much for Elon Musk.
Despite losing about $1 billion in the recent plunge in oil prices, the Chairman of both Tesla Motors and Solar City Corp. is still fairly well full of cash, with some $7 bn estimated remaining in his coffers.
Sure, on paper it seems as if it's a bad thing for his portfolio to lose so much in a week on a future that he actively works to diminish. Consider that for his electric car manufacturing company and his solar panel power production company, it's actually a good thing for him in the long term, and he knows it.
Why? Well, because if oil bottoms out due to OPEC decisions, and not actually due to the laws of economic elasticity (supply and demand), then it's a telltale sign that the oil boom (as an industry) is getting ready to accept that it has to start downsizing to handle lower long-term demand.
Of course, that's just conjecture, and it could easily be proven wrong. So who's going to do that?
Want to know more? Go ahead. Read all the
gory details about this blood letting that has not (at least yet) busted the bank of Mr. Musk.
And please, for the love of dog, do spout off your comments below, if ye can.
