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Would Elon bankrupt himself before Tesla?

Discussion in 'TSLA Investor Discussions' started by jdevo2004, Aug 10, 2016.

  1. jdevo2004

    jdevo2004 Member

    May 23, 2012
    It is interesting to hear about how Tesla was started and how close Elon came to losing it all. I wonder now that he is super rich if he is still true to his altruistic vision. I understand that Elons fortunes are heavily tied with Tesla, however if push came to shove, would he sell his stock in Tesla to raise cash for Tesla? It seems like the type of thing he would do. All or nothing sort of mentality. He expects his employees to share his dream and make sacrifices, I wonder how much financial sacrifice he is willing to take on if things got very bad.
    I guess what I am getting at is that a lot of people do not understand how Tesla as a company has not run out of steam and gone bankrupt by now. They do not understand why the stock price is so high for such a tiny car company. What they do not understand IMHO is that Tesla is probably backed by Elons personal bank account and will likely never go bankrupt because of that. No matter how bad things go for Tesla, Elon will probably make it his personal business to ensure Tesla lives on.
    I wonder if Jim Cramer has thought of that.
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  2. bh1783

    bh1783 Member

    Apr 7, 2014
    He already does this:
    Elon Musk Supports His Business Empire With Unusual Financial Moves
    "In addition to the bond purchases, he has taken out $475 million in personal credit lines, buying shares of SolarCity and Tesla when they needed capital, securities filings show.

    The credit lines are secured with about $2.51 billion of Mr. Musk’s shares in SolarCity and Tesla, based on their closing prices Wednesday.

    Few top executives use their shares as collateral for personal loans because it can be risky to other shareholders and also raises concerns that the executive’s personal interests could conflict with the company’s interests.

    If the stock price slides, that could trigger a margin call requiring the executive to sell the shares or put up more collateral to repay the loan."
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