Index Investing News
Saturday, May 31, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Elon Musk Warns Against Margin Debt on Risk of Market ‘Mass Panic’

by Index Investing News
December 25, 2022
in Financial
Reading Time: 2 mins read
A A
1
Home Financial
Share on FacebookShare on Twitter


(Bloomberg) — Billionaire Elon Musk is warning against something he himself has done — borrowing against the value of securities one owns — because of the risk of “mass panic” in the stock market.

Most Read from Bloomberg

“I would really advise people not to have margin debt in a volatile stock market and you know, from a cash standpoint, keep powder dry,” Musk said in the All-In podcast released Friday. “You can get some pretty extreme things happening in a down market.”

The Tesla Inc. chief executive officer put up billions of his own money when he purchased Twitter Inc. for $44 billion earlier this year and saddled the company with $13 billion of debt. Bloomberg News has reported that Musk’s bankers are considering replacing some of the high-interest debt he layered on Twitter with new margin loans backed by Tesla stock that he’d be personally responsible for re-paying.

Tesla Margin-Loan Talks Show Pressure Mounting on Musk, Bankers

He’s also disposed of nearly $40 billion of Tesla’s shares, a move that contributed to driving the stock to a two-year low. Following the latest sales, Musk again said this week he will stop selling shares, adding that the pause could last for two years or so.

The warning, at least the second made by Musk this month, is ironic given the billionaire has previously pledged his Tesla shares. As of December 2020, Musk had 92 million Tesla shares pledged as collateral, according to an SEC filing in April 2022.

During the podcast, Musk also reiterated his belief that the economy is overdue for a recession and that the slowdown could be similar to the scale seen in 2009.

“My best guess is that we have stormy times for a year to a year and a half, and then, dawn breaks roughly in Q2 2024, that’s my best guess,” Musk said. “Booms don’t last forever, but neither do recessions.”

–With assistance from Susanne Barton and Craig Trudell.

(Updates with previous disclosures on Musk’s pledged shares)

Most Read from Bloomberg Businessweek

©2022 Bloomberg L.P.



Source link

Tags: debtElonMarginmarketmassMuskPanicriskWarns
ShareTweetShareShare
Previous Post

Patriots fans turn on Mac Jones, call for dawn of Bailey Zappe era after horror opening drives

Next Post

Kurds, anti-racism groups gather after deadly Paris shooting

Related Posts

Trump doubles metal tariffs to 50%

Trump doubles metal tariffs to 50%

by Index Investing News
May 31, 2025
0

President Donald Trump stated Friday that he’s doubling the tariff charge on metal to 50%, a dramatic improve that might...

Vodafone Thought Approves Elevating Up To Rs 20,000 Crore Through Fairness Or Debt

Vodafone Thought Approves Elevating Up To Rs 20,000 Crore Through Fairness Or Debt

by Index Investing News
May 30, 2025
0

Vodafone Thought Ltd.'s board on Friday authorised fundraising of as much as Rs 20,000 crore by way of fairness or...

Banks step up cybersecurity vigil as cyber frauds see a spurt

Banks step up cybersecurity vigil as cyber frauds see a spurt

by Index Investing News
May 30, 2025
0

A flexi at SBI’s Residence Mortgage Centre at Himayatnagar in Hyderabad Okay Diwakar, the daddy of a scholar who’s acquired...

Centre approves further instalment of Rs 81,735 crore as tax devolution for states

Centre approves further instalment of Rs 81,735 crore as tax devolution for states

by Index Investing News
May 31, 2025
0

The Union Authorities has accepted an extra instalment of Rs 81,735 crore as Tax Devolution to the State Governments, which...

’50 tonnes per day’: Fishermen report an enormous soar in Octopus inhabitants alongside English Channel indicating a stress in deep ocean

’50 tonnes per day’: Fishermen report an enormous soar in Octopus inhabitants alongside English Channel indicating a stress in deep ocean

by Index Investing News
May 30, 2025
0

Unusually heat sea temperatures within the North Atlantic are disrupting marine ecosystems, resulting in a pointy rise in octopus catches...

Next Post
Kurds, anti-racism groups gather after deadly Paris shooting

Kurds, anti-racism groups gather after deadly Paris shooting

Letters to the Editor — Dec. 25, 2022

Letters to the Editor — Dec. 25, 2022

Comments 1

  1. Pingback: 伊隆马斯克警告市场“大规模恐慌”风险的保证金债务 - 光速日链网

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Deutsche Bank to acquire Numis, expanding investment bank in U.K. (NYSE:DB)

Deutsche Bank to acquire Numis, expanding investment bank in U.K. (NYSE:DB)

April 28, 2023
20-Year-Old Mom Allegedly Shared Photo Of Her Murdered Baby To Prove To Boyfriend He Was Her ‘Top Priority’

20-Year-Old Mom Allegedly Shared Photo Of Her Murdered Baby To Prove To Boyfriend He Was Her ‘Top Priority’

March 14, 2024
US Cyber Official Warns of ‘Inflection Level’ in Assaults From Russia and China

US Cyber Official Warns of ‘Inflection Level’ in Assaults From Russia and China

October 22, 2024
Digital Asset Platform Bakkt Agrees to Buy Apex Crypto for Up to 0M

Digital Asset Platform Bakkt Agrees to Buy Apex Crypto for Up to $200M

November 3, 2022
Is This the End of Bitcoin’s 4-Year Bull/Bear Market Cycle?

Is This the End of Bitcoin’s 4-Year Bull/Bear Market Cycle?

March 29, 2024
Two Individuals Combating for Ukraine Are Lacking, Household Says

Two Individuals Combating for Ukraine Are Lacking, Household Says

June 16, 2022
Commercial real estate lenders in San Francisco face risk amid credit crunch, says Julie Biel

Commercial real estate lenders in San Francisco face risk amid credit crunch, says Julie Biel

May 7, 2023
WuXi AppTec Co., (WUXIF) Ltd. Q1 2025 Earnings Name Transcript

WuXi AppTec Co., (WUXIF) Ltd. Q1 2025 Earnings Name Transcript

April 29, 2025
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In