"Chapter 7 of Title 11 of the United States Code (Bankruptcy Code) governs the process of liquidation under the bankruptcy laws of the United States, in contrast to Chapters 11 and 13, which govern the process of reorganization of a debtor. Chapter 7 is the most common form of bankruptcy in the United States."
Airlines get free government money though. Will twitter? If not, Twitter will need to borrow more money and at higher interest rates compared to market rates if they go through with bankruptcy.
Funny thing about the bankruptcy hypothesis is that the owner of Twitter is the richest man in the world and could literally pay old twitters expenses for decades even if it never made a penny. If we are just talking about the debt payments, he has a 200 year runway.
Actually be probably can't. Musk's wealth is largely on paper, as Tesla stock. Which is enormously overvalued and has been plummeting since he bought Twitter. If Twitter needs cash injections, he has to sell more Tesla, which will depress the price further.
A billion dollars a year of stock sales is a huge amount of guaranteed supply to the market. And it's non-optional: it has to be a billion dollars a year. But Tesla isn't worth anywhere near it's current market capitalization either.
I think that share quantity and value are very separated concepts. At some point Elon loses control of Tesla and that's it: Tesla's price has been tanking, and it's still on its way down to a sane valuation.
3 Renault Nissan Mitsubishi Alliance 7,680,014 (same) -1.3%
4 Hyundai Motor Group 6,667,085 +1 +5.0%
5 Stellantis 6,583,269 +1 +5.2%
6 General Motors 6,291,000 -2 -7.9%
7 Honda 4,121,000 (same) -6.5%
8 Ford Motor Company 3,942,000 (same) -5.9%
9 Suzuki 2,763,000 +1 12.9%
10 BMW 2,521,514 +1 +8.5%
Notice who's not in that list?
Now let's look at market capitalization[2]:
1 TeslaTSLA $568.87 B
2 ToyotaTM $202.86 B
3 PorscheP911.DE $101.44 B
4 BYD002594.SZ $86.39 B
5 VolkswagenVOW3.DE $84.30 B
6 Mercedes-BenzMBG.DE $69.28 B
7 General MotorsGM $57.48 B
8 BMWBMW.DE $57.39 B
9 FordF $56.60 B
10 StellantisSTLA $48.87 B
There is no possible way Tesla is worth more then double what Toyota is, while shipping about 1/10th of the vehicles. The Price-Earnings ratio is 56, vs Toyota's 9.
By every possible metric, it is vastly overvalued compared to it's profitability, and there's no reason on the horizon to think it will suddenly catch up since all those automakers are moving directly into it's space.
If you want to compare companies by 'how big' they should be, you need to compare enterprise value, not market capitalisation.
If you think Toyota's stock (or bonds etc) will increase in market price relative to Tesla, for a fee financial markets will let you bet on that conviction and make money, if you are right.
It's borderline a meme stock at this point. Tesla is valued as if it will forever be able to sell every car they make, on earnings calls Elon blows off any questions about demand. In the last few months though used car prices for Tesla have plummeted, I think they're finally about to run into demand issues as they get more supply online
Airlines are notoriously for going bankrupt regularly.