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I understand why Musk don't like short sellers. They diminish his leverage. Musk has heavily leveraged his TSLA holdings. 40% of his Tesla shares were collater
by Nokinside 8y ago
I understand why Musk don't like short sellers. They diminish his leverage.
Musk has heavily leveraged his TSLA holdings. 40% of his Tesla shares were collateral for loans as of year-end 2017. TSLA is down 19% from that point.
Leveraging holdings of heavily leveraged company is typical Musk high-risk gamble. Aiming for the stars even in finance using leverage as a rocket fuel. Musk is probably using this leverage to fund his other businesses. If TSLA tanks he may receive margin call and must sell part of his SpaceX stock to compensate.
edit: TSLA total debt to total equity ratio is 286.29 for the "Musk-Tesla Inc." that ratio is almost double.