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He gets loans using stock as collateral. billionaires have entirely different resources than the rest of us. AFAIK he has slightly >50% of his Tesla stock pledg
by dillondoyle 5y ago
He gets loans using stock as collateral. billionaires have entirely different resources than the rest of us. AFAIK he has slightly >50% of his Tesla stock pledged as collateral for loans right now.
At tiny interest rates (wouldn't be surprised if he gets even better private bank rates because they want in on his other business or IPO etc).
it's basically free money - until something goes wrong... especially in the crazy dynamic we seem to be in now where fast stock growth = more access to free money = faster stock growth cycle. until pop
- rblatz 5y agoIn a correction he is facing a nasty margin call.
- dillondoyle 5y agoWhich would in turn probably hurt (?crash) the stock. It's a game of chicken. GME again! From an outside who only reads the free bloomberg it feels like there's a lot of this going on right now just boosting everything especially with basically free money; the recent Archegos blow up as an example of the down side
- KptMarchewa 5y agoI've heard about 50% stock as collateral when Tesla was 20% of its current value. It does not make sense now - that would mean he took ~90 billion dollars of loans.