It’s called leveraged borrowing, it’s how the billionaire class pays for things. The banks typically give them super low rates and generous terms on these types of loans.
So what Elon did was took a loan against his assets, Tesla stock, at a low APR with very loose repayment terms, then paired that with money pledged by a few other minority investors and that’s how he was able to quickly come up with 44 billion to buy Twitter.
dohpaz42@lemmy.world 3 weeks ago
It’s my understanding that Musk borrowed heavily from investors for that cash.
David_Eight@lemmy.world 3 weeks ago
Buy, Borrow, Die strategy.
Buy something that potentially increases in value (real estate, companies, stock etc)
Borrow money against the appreciated value of step 1, this borrowing in not taxable.
Die and leave assets to whoever and never pay tax on the assets.