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Losing 70% of the value of the collateral, makes me wonder where the price floor that would trigger a margin call for Musk’s creditors is. This isn’t a good f

• etchalon 4y ago
  I forget where I read it, but whenever I think of lenders in this situation I remember the quote, "When you owe the bank 10$, that's your problem. When you owe the bank a million dollars, that's the bank's problem." Or something like that.
  • lotsofpulp 4y ago
    Only if you do not own liquid assets worth $1M that are easily acquired via court judgment. Equity in an established and profitable business like Tesla is not a bad deal in the event of default, so I do not see what incentive lenders would have to renegotiate.
    • jacquesm 4y ago
      When the parties you borrow from cut up journalists with bone saws the court isn't what you should be worried about. I'm pretty sure Elon is safe from that kind of treatment but at the same time it already happened and in plain sight and nobody was held accountable (at least, nobody that wasn't a scapegoat).
• incrudible 4y ago
  Probably around $80, assuming a price around $1000 (before the split) and a 25% ratio. https://seekingalpha.com/article/4503494-tesla-stock-as-collateral-to-buy-twitter-avoid-buy-the-dip https://seekingalpha.com/article/4503494-tesla-stock-as-coll...