Tesla CEO Elon Musk, a Dogecoin fan, spent more than $8.5 billion at Tesla Inc. to provide the math for his $44 billion deal to buy Twitter Inc. sold his share.
Dogecoin lover, trying to balance money for Twitter
As reported by Kriptokoin.com, Elon Musk has invested $13 billion in bank financing, $12.5 billion in margin loan and Tesla to buy the social media company. It has committed an additional $21 billion backed by its shares. According to experts’ calculations, Tesla’s co-founder had about $3 billion in cash and investments to meet this $21 billion commitment, prior to the most recent share sale. Recent divestments have brought that total to approximately $11.5 billion.
But as a result of the trades, Elon Musk has fewer shares to cover his margin loan with an initial loan-to-value ratio of 20%. That means it will have to collateralize $62.5 billion worth of Tesla stock when funded.
Tesla currently owns 163 million shares valued at approximately $146 billion, though more than half have already been committed to secure existing personal debt, according to Tesla’s latest proxy statement. . If the electric car maker’s share price drops below $837, or about 7% below its current price, it won’t have enough stock to secure the loan. Shares fell as low as $821.70 by Thursday.
Calculations assume that it cannot send shares in Tesla options because the collateral must ‘free of any lock-ins or sale restrictions,’ according to one filing. His options turn into shares that cannot be sold for five years.
Elon Musk said, ‘There are no more sales’, I wonder..
Elon Musk said that he is trying to persuade new or existing stock investors to join the Twitter deal. If successful, he will have reduced the amount he has to contribute. “No further Tesla sales are planned after today,” Elon Musk said in a tweet on Thursday. However, if additional sales occur that day, it still has time to submit more regulatory files.
While these developments are taking place, Tesla CEO’s dog Dogecoin (DOGE) seems to have lost the positive energy it captured with the Twitter acquisition. According to CoinMarketCap data, at the time of writing, Dogecoin was trading at $0.1352, losing 2.53% in the last 24-hour period.