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this post was submitted on 07 Sep 2023
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Worthless =/= insolvent.
The value is determined based on a shareholder valuation, insolvent means having a negative cashflow and depleted reserves.
You can technically run a stock absolutely into the ground if everyone would place sell orders at market (i.e. without limit) and the only buyers would offer 1 cent.
That changes nothing about the profitability of the company though.
And while this is a very hypothetical scenario for a listed company, for an unlisted one you can freely adjust your list price. If he were to sell 1% for $1 to his neighbor, the company valuation would be down to 100 bucks.
Since it's not a stock company, the valuation is speculative.
But the company being insolvent, and running on a deficit without prospective og turning a profit. Would by normal measures render the company worthless, except if there is a tax benefit to take over.
Musk can value it at whatever he wants, I strongly doubt he will find a buyer at any price.