“If Elon Musk were forced to sell shares of our common stock that he has pledged to secure certain personal loan obligations, such sales could cause our stock price to decline,” Tesla wrote.

“We are not a party to these loans,” the company added.

It already seemed like Musk was going to have trouble paying back his loans for X. Last year, the social media company reported that its value had plummeted by more than half, to around $19 billion. When the banks formulated a plan to restructure the loan, X didn’t follow through, The Wall Street Journal reported at the time.

Tesla stock was doing slightly better on Wednesday, as a result of an uptick in the wider market caused by a report that inflation had eased slightly in February.

  • 🇨🇦🇩🇪🇨🇳张殿李🇨🇳🇩🇪🇨🇦@ttrpg.network
    30·
    15 hours ago

    Tesla stock was doing slightly better for a couple of days, yes, before starting another downward turn.

    And yes, the Apartheid Manchild is leveraged to the hilt. He famously doesn’t take (much of) a salary from his companies, preferring, for tax reasons, to get money through loans with his company stock as collateral. While the specifics of these are, of course, private, the general rules such leveraging tends to follow are well-known so we can make a few educated guesses.

    My own such guesses are that starting at about a price of 200 he may see the beginnings of margin calls where the holders of his debt force him to repay a portion of the debt immediately or to sell off stock until he can pay off that portion. By 175 it’s all but certain that margin calls have started (and quite possible they’ve been going for a while). By 150 the bulk of his loans are making margin calls and his stock tanks as he is forced to sell off ownership.

    And of course when he starts getting forced to sell off stock, the stock falls possibly triggering more and more margin calls until TSLA is briefly in penny stock territory before it rebounds to roughly its actual real value. With the Manchild having no actual money to show for it.

    There’s a reason he’s resurrected that whole “I deserve 56 billion dollars” case despite that being a massively inappropriate thing to claim when his stock is melting down. He’s going to need cash soon that’s not leveraged by his stock.