The stock is overvalued. He used it as collateral to borrow against. If the price goes too low, it triggers a margin call meaning the banks want their money back or more collateral.
#BankruptMusk
#BankruptMusk
February 28, 2025 at 2:41 AM
The stock is overvalued. He used it as collateral to borrow against. If the price goes too low, it triggers a margin call meaning the banks want their money back or more collateral.
#BankruptMusk
#BankruptMusk
Avoiding a margin call due to Tesla stock being used as collateral for the loans on Xitter.
March 29, 2025 at 12:12 AM
Avoiding a margin call due to Tesla stock being used as collateral for the loans on Xitter.
Serious question. If Musk bought Twitter on margin with his Tesla shares as collateral, at what point does he get margin called.
March 11, 2025 at 9:11 AM
Serious question. If Musk bought Twitter on margin with his Tesla shares as collateral, at what point does he get margin called.
It probably has something to do with Tesla shares acting as collateral for the loans Musk took to purchase Twitter. If Tesla falls below a certain level, Musk faces a margin call on the collateral (Tesla shares). Now Twitter is owned by the AI co. This could affect the collateral obligation somehow.
March 29, 2025 at 10:44 AM
It probably has something to do with Tesla shares acting as collateral for the loans Musk took to purchase Twitter. If Tesla falls below a certain level, Musk faces a margin call on the collateral (Tesla shares). Now Twitter is owned by the AI co. This could affect the collateral obligation somehow.
Very important point: SoftBank was pledging *all* of its OpenAI stock (worth $60bn+ on paper) to get a $6 billion margin loan. Banks turned it down due to concerns about the value of OpenAI stock. Banks clearly do not think OpenAI is worth $852 billion.
www.tradingkey.com/analysis/sto...
www.tradingkey.com/analysis/sto...
June 10, 2026 at 4:07 AM
Very important point: SoftBank was pledging *all* of its OpenAI stock (worth $60bn+ on paper) to get a $6 billion margin loan. Banks turned it down due to concerns about the value of OpenAI stock. Banks clearly do not think OpenAI is worth $852 billion.
www.tradingkey.com/analysis/sto...
www.tradingkey.com/analysis/sto...
I believe that’s where his margin calls start kicking in, which means his Tesla stock stops being acceptable collateral for his existing loans.
April 7, 2025 at 2:22 AM
I believe that’s where his margin calls start kicking in, which means his Tesla stock stops being acceptable collateral for his existing loans.
The $3.5bn limit means Musk's margin loans are massively overcollateralised
Mush has pledged 236m Tesla shares as collateral, worth ~$82bn
So even if he's borrowed the full $3.5bn, the loan-to value would be just 4%!
For reference, the cancelled Twitter margin loan had a 20% LTV
Mush has pledged 236m Tesla shares as collateral, worth ~$82bn
So even if he's borrowed the full $3.5bn, the loan-to value would be just 4%!
For reference, the cancelled Twitter margin loan had a 20% LTV
September 12, 2025 at 9:53 AM
The $3.5bn limit means Musk's margin loans are massively overcollateralised
Mush has pledged 236m Tesla shares as collateral, worth ~$82bn
So even if he's borrowed the full $3.5bn, the loan-to value would be just 4%!
For reference, the cancelled Twitter margin loan had a 20% LTV
Mush has pledged 236m Tesla shares as collateral, worth ~$82bn
So even if he's borrowed the full $3.5bn, the loan-to value would be just 4%!
For reference, the cancelled Twitter margin loan had a 20% LTV
Remember that SoftBank a few weeks ago failed to get a 10 billion dollar loan using their stake in OpenAI as collateral, so they tried to get a 6 billion dollar loan and they still couldn’t find anyone willing to take their OpenAI stake as collateral.
SoftBank’s Attempt to Get $6 Billion OpenAI Margin Loan Stalls
SoftBank Group Corp.’s talks with potential creditors to raise at least $6 billion from a margin loan backed by its OpenAI stake have stalled, people familiar with the matter said, just weeks after th...
www.bloomberg.com
June 27, 2026 at 1:45 AM
Remember that SoftBank a few weeks ago failed to get a 10 billion dollar loan using their stake in OpenAI as collateral, so they tried to get a 6 billion dollar loan and they still couldn’t find anyone willing to take their OpenAI stake as collateral.
Musk bought Xitter with a loan. Collateral for the loan is Tesla stock.
If Tesla stock falls Musk must add cash to the pot - a margin call. To get cash he has to sell stock, pushing price down. It's a death spiral.
Margin call would probably happen between $100 and $200 but nobody knows exactly.
If Tesla stock falls Musk must add cash to the pot - a margin call. To get cash he has to sell stock, pushing price down. It's a death spiral.
Margin call would probably happen between $100 and $200 but nobody knows exactly.
April 7, 2025 at 4:04 AM
Musk bought Xitter with a loan. Collateral for the loan is Tesla stock.
If Tesla stock falls Musk must add cash to the pot - a margin call. To get cash he has to sell stock, pushing price down. It's a death spiral.
Margin call would probably happen between $100 and $200 but nobody knows exactly.
If Tesla stock falls Musk must add cash to the pot - a margin call. To get cash he has to sell stock, pushing price down. It's a death spiral.
Margin call would probably happen between $100 and $200 but nobody knows exactly.
Margin calls happen when investors borrow to buy assets and the collateral value of those assets falls below required levels.
Brokers demand more cash immediately, and if you can’t pay that very moment, they forcibly sell your holdings.
This often at the worst possible time.
Brokers demand more cash immediately, and if you can’t pay that very moment, they forcibly sell your holdings.
This often at the worst possible time.
April 6, 2025 at 11:15 PM
Margin calls happen when investors borrow to buy assets and the collateral value of those assets falls below required levels.
Brokers demand more cash immediately, and if you can’t pay that very moment, they forcibly sell your holdings.
This often at the worst possible time.
Brokers demand more cash immediately, and if you can’t pay that very moment, they forcibly sell your holdings.
This often at the worst possible time.
Best films that take place in one day
April 6, 2024 at 5:01 AM
Best films that take place in one day
Elon Musk financed Twitter’s purchase with borrowed money from Tesla stock as collateral. If Tesla stock crashes, banks could repossess Twitter. If Musk faces a margin call, he may need a private investor bailout or have his companies’ assets, including Tesla, SpaceX and X, liquidated. ♻️
April 6, 2025 at 12:16 PM
Elon Musk financed Twitter’s purchase with borrowed money from Tesla stock as collateral. If Tesla stock crashes, banks could repossess Twitter. If Musk faces a margin call, he may need a private investor bailout or have his companies’ assets, including Tesla, SpaceX and X, liquidated. ♻️
If your asset falls enough, you may be compelled to close out your debt altogether. What happens then? You need to sell your collateral. Fast. Those fire sale dynamics trigger other margin calls/stops, which trigger more margin calls etc... You get the picture. It's bad. It's dumb. Let's not do this
July 22, 2025 at 11:11 AM
If your asset falls enough, you may be compelled to close out your debt altogether. What happens then? You need to sell your collateral. Fast. Those fire sale dynamics trigger other margin calls/stops, which trigger more margin calls etc... You get the picture. It's bad. It's dumb. Let's not do this
His whole career is an Uncut Gems scenario where he is hyperactively keeping the stock price up. He has pledged at least 1/3 of his Tesla holdings as collateral for margin loans and if the value of Tesla dropped below a certain amount he would be wiped out. IPO is his way to get out from under this
the other thing is Elon is not actually rich in the usual sense! his companies make no money!! one good shove and his whole house of cards would come tumbling down
June 11, 2026 at 6:49 PM
His whole career is an Uncut Gems scenario where he is hyperactively keeping the stock price up. He has pledged at least 1/3 of his Tesla holdings as collateral for margin loans and if the value of Tesla dropped below a certain amount he would be wiped out. IPO is his way to get out from under this
If the world (through boycotts & stock selling) can get Tesla stock under $100, every bank will initiate margin calls on all loans where Tesla is used as collateral. Musk will have to pledge additional assets, most likely more shares. As the price falls, he goes further into margin. Let's go world!
March 17, 2025 at 3:16 PM
If the world (through boycotts & stock selling) can get Tesla stock under $100, every bank will initiate margin calls on all loans where Tesla is used as collateral. Musk will have to pledge additional assets, most likely more shares. As the price falls, he goes further into margin. Let's go world!
The margin of error, the collateral damage, is acceptable to them. That's how inhuman they are
December 31, 2025 at 2:55 AM
The margin of error, the collateral damage, is acceptable to them. That's how inhuman they are
FWIW, I am not too excited about margin call possibility. Last year, Tesla capped Elon’s margin borrowing at $3.5 billion using Tesla stock as collateral. ELON now has a juicy pile of SpaceX, xAI and Xitter collateral to tap.
March 18, 2025 at 11:17 AM
FWIW, I am not too excited about margin call possibility. Last year, Tesla capped Elon’s margin borrowing at $3.5 billion using Tesla stock as collateral. ELON now has a juicy pile of SpaceX, xAI and Xitter collateral to tap.
Lets bring Tesla stock down so he can get a margin call, A margin call occurs when a borrower no longer has enough equity to meet the minimum requirements. In Nazi Musk's case, the price of Tesla stock used as collateral would fall below a price point, He'll be forced to deposit money or liquidate
March 20, 2025 at 3:25 AM
Lets bring Tesla stock down so he can get a margin call, A margin call occurs when a borrower no longer has enough equity to meet the minimum requirements. In Nazi Musk's case, the price of Tesla stock used as collateral would fall below a price point, He'll be forced to deposit money or liquidate
Add leverage into the mix, which imposes margin calls & stops on a volatile asset class. To strip out jargon a bit, as the value of your asset falls you are required to increase amount of collateral you pledge against your borrowing to keep the ratio of debt/collateral value within a pre-set bound.
July 22, 2025 at 11:10 AM
Add leverage into the mix, which imposes margin calls & stops on a volatile asset class. To strip out jargon a bit, as the value of your asset falls you are required to increase amount of collateral you pledge against your borrowing to keep the ratio of debt/collateral value within a pre-set bound.
He's the most leveraged person alive, for at least $60 billion and probably much more than that.
It's why he can't sell off anymore of his personal shares of Tesla stock: he needs it for loan collateral.
The words 'margin call' are in his future.
It's why he can't sell off anymore of his personal shares of Tesla stock: he needs it for loan collateral.
The words 'margin call' are in his future.
March 9, 2025 at 6:00 AM
He's the most leveraged person alive, for at least $60 billion and probably much more than that.
It's why he can't sell off anymore of his personal shares of Tesla stock: he needs it for loan collateral.
The words 'margin call' are in his future.
It's why he can't sell off anymore of his personal shares of Tesla stock: he needs it for loan collateral.
The words 'margin call' are in his future.
I didn't realize the connection between bitcoin and metals.
Tokenized metals futures are used as collateral to buy bitcoin on margin, I guess? So when bitcoin tanks, metals are sold, and those drop as well?
Tokenized metals futures are used as collateral to buy bitcoin on margin, I guess? So when bitcoin tanks, metals are sold, and those drop as well?
February 5, 2026 at 7:59 PM
I didn't realize the connection between bitcoin and metals.
Tokenized metals futures are used as collateral to buy bitcoin on margin, I guess? So when bitcoin tanks, metals are sold, and those drop as well?
Tokenized metals futures are used as collateral to buy bitcoin on margin, I guess? So when bitcoin tanks, metals are sold, and those drop as well?
Exactly. The Tesla brand is dead worldwide. It's not coming back. And he's got some hefty margin calls coming up. He used tesla stock as loan collateral.. whoops !
March 11, 2025 at 3:48 PM
Exactly. The Tesla brand is dead worldwide. It's not coming back. And he's got some hefty margin calls coming up. He used tesla stock as loan collateral.. whoops !
All his money is in Tesla stock. He uses it as collateral to buy X and other companies. If Tesla stock tanks, his loans get margin called and he as to pay up or sell the companies.
March 22, 2025 at 4:40 PM
All his money is in Tesla stock. He uses it as collateral to buy X and other companies. If Tesla stock tanks, his loans get margin called and he as to pay up or sell the companies.
Musk has a third of his Tesla stake pledged as loan collateral. The Tesla stock is under pressure. The SpaceX IPO arriving just in time to bail out the world's most expensive margin loan is not a coincidence. He needs to spin a story to pump the price of the SpaceX stock to do this.
June 4, 2026 at 10:13 AM
Musk has a third of his Tesla stake pledged as loan collateral. The Tesla stock is under pressure. The SpaceX IPO arriving just in time to bail out the world's most expensive margin loan is not a coincidence. He needs to spin a story to pump the price of the SpaceX stock to do this.