this post was submitted on 11 Jun 2025
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Musk has pledged $62.5 billion in Tesla stock as collateral for margin loans of $12.5 billion.
Giacomo Santangelo, a senior lecturer in economics at Fordham University said “A 20% stock decline on a 60% loan-to-value loan means the borrower must immediately post additional collateral or face forced liquidation. This creates cascade risk, where small declines trigger margin calls, forcing either more pledging or open-market sales, putting more pressure on the stock.”
https://www.forbes.com/sites/eriksherman/2025/06/05/does-elon-musks-borrowing-show-a-super-low-tesla-stock-valuation/
Ow right, I forgot the US is a corrupt nation and allows bullshit like this.
Then again, it is most likely his personal holding/company which has the loans and stock and he has 100% of the shares in that company which will go bankrupt if his loans ever default(? I think that;s the right word?).
Yes. His financial advisors have probably limited his liability. He can lose the value of his holdings, but is unlikely to go into debt himself.