Comment on Tesla customers in France sue over brand becoming 'extreme right'
Knock_Knock_Lemmy_In@lemmy.world 1 day agoMusk has pledged $62.5 billion in Tesla stock as collateral for margin loans of $12.5 billion.
Giacomo Santangelo, a senior lecturer in economics at Fordham University said “A 20% stock decline on a 60% loan-to-value loan means the borrower must immediately post additional collateral or face forced liquidation. This creates cascade risk, where small declines trigger margin calls, forcing either more pledging or open-market sales, putting more pressure on the stock.”
Vinstaal0@feddit.nl 1 day ago
Ow right, I forgot the US is a corrupt nation and allows bullshit like this.
Then again, it is most likely his personal holding/company which has the loans and stock and he has 100% of the shares in that company which will go bankrupt if his loans ever default(? I think that;s the right word?).
Knock_Knock_Lemmy_In@lemmy.world 1 day ago
Yes. His financial advisors have probably limited his liability. He can lose the value of his holdings, but is unlikely to go into debt himself.