3 ms·
Since he is using a chunk of Tesla stock to secure loans to fund a large portion of this deal what happens when, not if, Tesla stock falls to more rational leve
by JaimeThompson 4y ago
Since he is using a chunk of Tesla stock to secure loans to fund a large portion of this deal what happens when, not if, Tesla stock falls to more rational levels?
- brasic 4y agoPresumably this possibility is part of the risk the lenders are taking into account and charging for. If loan collateral was subject to constantly being marked-to-market and lenders could “margin call” to get more in scenarios like this, lending would be quite a bit safer.
- JaimeThompson 4y agoIn very hot markets such as the one we are currently in rational long term thinking is brushed aside rather more often then is responsible so the assumption they correctly quantified the risk in this transaction isn't fully supported by their past history of actions.