TSLA Shares were down 12% yesterday – one of its largest 1 days selloffs ever. While the overall market was down too, the pressure on TSLA was exceptional. Why?
In an SEC filing loan terms were announced for Elon’s TWTR takeover bid. It seems Elon is borrowing up to $12.5 billion, and using TSLA stock as collateral. If the deal goes through & TSLA shares decline, that could mean Elon Musk would face a margin call.
If TSLA shares fall a great deal before the TWTR deal is announced, it may challenge Elon’s ability to finance the deal himself.
Download the LTV spreadsheet here.