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this post was submitted on 05 Jul 2023
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It's even more astonishing that the actual consequences are, almost nil.
He's simply not paying anyone. He's a massive fraudster and he's getting away with it. That's baffling. And sad.
Any normal business would have been completely disassembled by debt collectors, but that idiot somehow deflects every legal consequence.
The reason he's able to skip so much stuff, is what he skipped on first had escrow accounts to cover missed payments.
Those are pretty much all drained now, so consequences are coming since he was obligated to refund the escrows in x days/months. That's why it seems like he's "getting away with it" for so long.
He's not paying these because the other option is not paying his loans.
If he doesn't pay them, they force him to sell a bunch of Tesla stock, doing so would drop the price and it's already way lower than when he got the loans.
What’s an escrow account? Your comment is very clear and I understand the gist of it but I don’t actually know what escrow means.
Edit: stupid spelling mistake
Let's say you agree to rent my house
My house is baller tho, and the rent is 10k a week, for 520k a year.
So when we sign the lease, we agree that you pay 4 weeks into a bank account that youre not able to touch and I'm not able to touch either.
It's only there because if something happens and you don't pay me 10k each week, the account managers (escrow service) pays me 10k each week.
Once that happens, you're contractually obligated to pay the account (escrow) back within X amount of time. That way if you miss more payments, the buffer is replaced. But since the buffer exists, legally you haven't missed a payment until the fifth week you don't pay me.
Musk has been coasting on that buffer. Now that he's running out of buffer, legal consequences will start piling up.
Thank you!