3 ms·
Tesla has a rule limiting borrowing against its stock to 25% so that's probably his limiting factor.
by mcintyre1994 5y ago
Tesla has a rule limiting borrowing against its stock to 25% so that's probably his limiting factor.
- kjksf 5y agoTesla is not the lender, Musk's broker is. Therefore Tesla has zero input into margin rate broker decides to give Musk.
- colinmhayes 5y agoNo, Musk has an agreement with tesla that he can only borrow against a quarter of his shares. He's already borrowed against quite a few too. Musk could go to the board to get that number bumped up, but until then he can't just borrow the full $21 billion against his shares.
- londons_explore 5y agoDoes the rule apply to all shareholders? I don't really see how a publically traded company can put an arbitrary condition on what can be done like that - any borrowing can be a totally private deal between you and a bank (or another private individual) - Tesla isn't even privvy to such deals, so how can they enforce any rules about them?
- bombcar 5y agoLarge shareholders have different rules and restrictions. For example, you can go buy TWTR all you want, but Musk had to report when he had obtained a certain percentage. Remember that Musk is not only a shareholder of TSLA, but also an employee.