Submitted by tvfanatic1337 t3_zlmhvt in wallstreetbets
Don’t forget that Elon has $100B worth of Tesla shares as collateral for his own personal loans!!
There is a very real risk that he gets liquidated out of his 25% Tesla position, creating a panic and a BANK RUN on $TSLA stock if fear/contagion set in. Elon’s personal loans will become insolvent between $120-$130/share of TSLA
He has over 60% of his TSLA stake as collateral. It is >2 to 1 margin; with a high risk of margin call in pending macro environment.
He had previous collateral loans even before Twitter fiasco. This article is from last month and he had 267 million shares of Tesla as collateral as of March 2022, before the price fell 50% in the last 6 months. He is having to add to his collateral shares more as Tesla falls. (It is about 60% of his Tesla shares up for collateral as of last month; probably even more now with the recent price drop + his net worth dropping from Twitter losing value (not a $44B asset anymore).
"VerityData's InsiderScore notes that Musk had 267.6 million shares of Tesla pledged as collateral for personal indebtedness as of Mar. 31. He holds about 19.7% of Tesla's outstanding shares following the latest sale of about 19.5 million shares, a decline from about 22.4% ownership at the end of 2020.
Musk still owns 445.6 million Tesla shares and holds exercisable options for 177.3 million more Tesla shares at $23.34, as well as some smaller tranches of options."
Tesla stock is down over 50% since the last collateralized loan tally on March 31,2022.
It is set for a GameStop type event. A reverse short squeeze(Leveraged Long Squeeze) where Elon is squeezed out of his Leveraged Long Tesla position and the shorts make money on the way down as his 25% Tesla stake gets liquidated.
https://www.cnbc.com/amp/2022/11/09/tesla-sinks-on-elon-musk-stock-sales-twitter-distraction.html