Elon Musk’s Twitter Funding Puts More of His Tesla Holdings at Risk

Tesla Inc. Chief Executive Elon Musk has for years intertwined his personal business ventures with his stake in the auto maker. Using those holdings to help finance his $ 44 billion purchase of Twitter brings that connection to a deeper level.

A key part of the funding plan includes borrowing $ 12.5 billion from loans backed by more than $ 62.5 billion worth of Tesla shares that Mr. Musk owns — or about 40% of his stake at Wednesday’s closing price of $ 881.51. Tesla and several banks have put in place rules that would require him to put up more collateral if the company’s share prices fall.

Leave a Reply

Your email address will not be published. Required fields are marked *