From a Bloomberg article yesterday, “” The natural question after Tesla’s recent tumble: At what point could the Technoking be margin called?
There’s no clear answer, and any estimate relies on scenarios that are difficult to know through price swings or securities filings alone. (Musk and Jared Birchall, the managing director of his family office, didn’t respond to questions for this story.)
Tesla’s 2022 proxy filing shows Musk had about 52% of his shares pledged to secure debt as of the end of March, but it doesn’t specify how much he had actually borrowed against the pledged stock, or the terms of what could be one, two or several margin loans.
However, the margin-loan agreement that was originally part of the Twitter financing package provides some clues.
Under those terms, he could have borrowed $12.5 billion at a 20% loan-to-value ratio, with a margin call kicking in if that figure reached 35%, requiring him to either pledge more Tesla shares as collateral or reduce the size of the loan, or a combination of both.
Assuming the same parameters, and using the $359.20 stock price from March 31, Musk could have borrowed $19.2 billion against shares worth about $96 billion, according to Bloomberg calculations.””
People forget but just a few years ago, Tesla was on the brink of bankruptcy and Elon slept on the factory floor for 3 years.
In my opinion these leaders like Bezos and Musk are creating wealth the right way.
They are putting capital at risk and putting in the hard work, producing something that is useful to the society and solving global problems.
Good morning, no one denies Musk is brilliant. However, there are two concerning risk factors going forward. Are you certain you have been provided full transparency , with respect to the terms of the loans and the collateral provided to secure those loans ? At the margin, Musk getting so political is going to hurt the brand and potential sales. Regardless of our positions on these political issues, a material group of people will not buy a Tesla, going forward. Musks representations that, HE, will not be selling any more stock for a year or two are very, cute, let’s see what the lenders do with his shares, IF, the stock sells off again. Good luck.
The wealth explosion of Musk over the past year marks the fastest rise to the top of the rich list in history, and is a remarkable financial turnaround for the popular businessman who was in the headlines just 18 months ago for Tesla’s rapid cash burn and his personal leverage against the stock of the company
Jan 13 (Reuters) - Tesla has slashed prices globally on its electric vehicles by as much as 20%, extending an aggressive discounting strategy.
Could just buy BRK @1.3X book or less and get rich slow. Oh well…
PS Yes I know, Tesla stock went up in the past so it must go up in the future, got it.
Plus everyone knows Car companies are wonderful businesses and this one also gives away $55 Billion pay packages, makes robots and invests in Dodge-coin. Pure genius, Pass the Acapulco gold!
If TSLA is doing good with its sales, then why cut prices? The price cut is to increase the sales right? or in other words they don’t have pricing power, they cannot keep the price and increase the sales, let alone increase the price.
Sure. It takes a genius to evaporate $180 billion in wealth practically overnight. Genius or hubris, I’m not sure which. He’d have been better off mailing a $500 check to every man, woman, trans person, and child in America. Would have done more good. But hey, what do I know? I’m not a genius billionaire.
Twitter is planning to run content sponsorship deals with more than three dozen news outlets, media companies and sports leagues in the first half of this year, according to a schedule of events shared with ad partners and seen by Axios.
Details: This year, almost all of the major sports leagues, including the NFL, NBA, NHL, MLB, NASCAR, PGA Tour and more, plan to run content deals on Twitter around regular season games and tentpole events, like March Madness, NBA Playoffs and the Super Bowl, according to the schedule seen by Axios.
** Sports publishers like CBS Sports, Turner Sports, ESPN, FOX, Univision and Telemundo are also slated to take part in deals around key sports events, per the document.*
** News outlets such as the Wall Street Journal, NBCU, Reuters, Axios, Bloomberg, Forbes, Conde Nast and USA Today are also slated to participate in various Twitter content deals around tentpole moments such as the World Economic Forum at Davos, CES and Pride Week.*
** Entertainment and TV companies such as NBCU, Paramount and Disney are all slated to run content aligned with various award shows, concerts and prime-time TV hits, like “The Bachelor” on Disney’s ABC, “RuPaul’s Drag Race” on Paramount’s MTV and “The Masked Singer” on FOX.*