Musk could borrow up to 25% of his Tesla shares to pay for Twitter. Tesla’s rule would allow the CEO to borrow about $43 billion of his roughly $176 billion in shares.
That’s about what Musk’s offer values the social media company. Because Musk had already pledged 88 million shares of Tesla for personal loans as of last August, according to regulatory filings, the maximum he could borrow is even less, the Journal reported. Still, Musk already owns 9.2% of Twitter; only $39 billion remains.
But selling those shares would have consequences. Musk would reduce his control of Tesla and incur tax bills.
Whether Musk can secure funding from a bank remains to be seen, too. Tesla’s shares have swung as high as $1,145 and as low as $764 since mid-February, a degree of volatility that could make it hard to find a financial backer for the deal.