Elon should take notes what happened to Adam Neumann

Discussion in 'Luxury and Lifestyle' started by Pekelo, Apr 2, 2020.

  1. Pekelo


    How to lose a cool 10 Billion (give or take 2-3, ok, more likely give):


    "WeWork co-founder Adam Neumann has a new title: ex-billionaire.

    SoftBank Group Corp.’s decision to scrap an October agreement to buy $3 billion of WeWork stock means the former chief executive officer’s fortune has plummeted 97% to $450 million in less than a year -- wiping away $13.5 billion of his estimated net worth, according to the Bloomberg Billionaires Index."
  2. Sig


    Except Elon has several successful IPOs under his belt and a bunch of folks who will back his next endeavor no matter what happens to Tesla. Neumann, on the other hand, is widely regarded as a douche by everyone in the industry not named Masayoshi Son. And with this announcement it seems it may now be everyone!
    Clubber Lang likes this.
  3. Pekelo


    True. But if Tesla drops below 160ish he is going to get a bunch of margin calls and:

    1. He has to sell millions of Tesla shares.
    2. He has to sell SpaceX shares.

    The point is, once your net worth is in stocks, and the stock can go down a lot, you are in a vulnerable position. Bunch of paper billionaires from 2000 know this well.

    Long discussion on it:

    Last edited: Apr 2, 2020
  4. Sig


    You're missing my point. Neumann's a one hit wonder who is not only not thought highly of in the Valley but actively disliked by literally almost everyone. His only capital is the actual dollars he has in his bank account. He's done making more as an entrepreneur at least.

    Elon has several successful IPOs under his belt. His personal stock is pretty high with a lot of the people who matter. He has a whole lot of capital built up in terms of relationships, reputation, past success, and much as I think he can be an insufferable jackass....exciting ideas and the ability to sell them. As a result, he could lose every dollar he has tomorrow, and be back to being a billionaire in a few years if that's even what he cared about. He's in a completely different universe than Neumann. And most importantly for him, the money is just an end to the means of being able to work on what he thinks are enjoyable, potentially world-changing projects. He more than likely gets to do that for the rest of his life pretty much no matter how the chips fall with Tesla or anything else for that matter. The actual dollars are pretty irrelevant to him, while Neumann is almost certainly crying into his vodka shots right now.
    Banjo likes this.
  5. Banjo