• Elon Musk dumped Tesla stock worth $2.58 billion last week and has sold nearly $23 billion worth of his car company since April
Elon Musk is warning against something he's done - borrowing against the value of securities because of the risk of a "massive panic" in the stock market.
In the All-In podcast, the billionaire said, "I would really advise people not to take margin loans in a volatile stock market and, you know, from a cash perspective, keep the powder dry." in a down market," he said.
Musk bought Twitter Inc earlier this year for $44 billion and paid off $13 billion in debt on the company.
According to Bloomberg news agency, Musk's bankers are considering replacing some of the high-interest debt leveled at Twitter with new margin loans backed by Tesla Inc stock, which he would be personally responsible for repaying.
He also disposed of about $40 billion worth of Tesla shares, a move that contributed to pushing the stock to a two-year low. Following the latest selloff, Musk reiterated this week that he would stop selling shares, adding that the pause could last two years or more.
"I'm not selling any stock for 18 to 24 months," Musk said during an audio-only Twitter Space group chat on Thursday. Sales for at least one year.
Musk gave up $2.58 billion worth of Tesla stock last week and has sold about $23 billion worth of his car company shares since April, when he began building a position in Twitter.
As of December 2020, Musk had 92 million Tesla shares pledged as collateral, according to an SEC filing in April 2022.
Tesla had a market value of more than $1.1 trillion on April 1, the last trading day Musk revealed he was buying Twitter shares. The company has since lost nearly two-thirds of its value, at a time when rival automakers are cutting into Tesla's dominant share of electric vehicle sales.
Tesla shares fell more than 1% on Friday to $123.74. They were over $360 each on April 1 and reached an all-time high of over $414 in November of 2021.
This week, Tesla extended year-end discounts on two of its best-selling models, a sign that demand for its electric vehicles is slowing.
The Austin, Texas, company earlier this month began offering $3,750 in incentives on its Model 3 sedan and Model Y SUV on its website, but on Wednesday announced the discount will be extended to those taking delivery between now and December 31. doubled to $7,500.
Furthermore, Musk reiterated his belief that the economy is overdue for a recession and that the recession could be similar in scale to that seen in 2009.
"My best guess is we have a year to a year and a half of storm time, and then, second quarter of 2024 dawns, that's my best guess," Musk said. Recession".
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