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Could Elon Musk Face Margin Call Over Tesla Stock? What We Know


Published on 2025-03-19 18:21:29 - Newsweek
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  • Elon Musk may be forced to sell shares previously pledged to secure certain personal loans, should Tesla stock continue to decline. As pointed out by several online commentators, Musk is currently close to facing a margin call on the loans used to facilitate his 2022 purchase of Twitter.

Elon Musk could potentially face a margin call on his Tesla stock due to the company's declining share price, which has dropped significantly from its peak. According to reports, Musk has pledged a substantial amount of his Tesla shares as collateral for various loans. If Tesla's stock price continues to fall, it might trigger a margin call, where lenders could demand additional funds or the sale of assets to cover the loans. This situation arises as Tesla's market value has been affected by multiple factors including production challenges, increased competition in the electric vehicle market, and broader economic conditions. However, specifics on the exact terms of Musk's loans or the precise conditions that would trigger a margin call remain undisclosed, leaving the potential impact on Musk's financial position somewhat speculative.

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