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Forgive my ignorance, but rich people routinely get access to cash secured with their assets though, so why can't he do that, pledging his huge equity ownership

by skeeter2020 5y ago

Forgive my ignorance, but rich people routinely get access to cash secured with their assets though, so why can't he do that, pledging his huge equity ownership?

zdragnar 5y ago
It is still borrowed, which means still needs paying back. If you don't care about the stocks (i.e. they are only an investment vehicle) this is fine. Musk controls Tesla by way of owning more than 50% of its stock. He'd be trading Tesla for Twitter, which I think anyone would agree is a terrible trade.
- giobox 5y ago
  What? He's the single largest shareholder, but even recently its approx 17 percent of Tesla he owns. Musk hasn't owned more than 50% of the stock anytime Tesla has been a public company.
  - HWR_14 5y ago
    Which is about the same percentage of AMZN that Bezos owner pre-divorce. Interesting.