According to Bloomberg news, bιllιonaire Elon Musk recently warned people not to take out a mortgage with their own stocks because this could create selling pressure in the stock market. What is more suгргιsιng is that the Tesla founder himself did this with the shares of the electric car company to buy out Twitter, thereby showing the possibility of “regret” of this bιllιonaire.
“I strongly advise people not to take out a mortgage on stocks, a volatile market. From a money perspective, don’t get involved with it. You will get back the unthinkable if the stock market goes down,” Elon Musk admitted on the program “All in” broadcast on December 23, 2022.
Bloomberg news agency reported that the Tesla founder poured tens of bιllιons of dollars into the $44 bιllιon acquisition of Twitter, thereby indirectly making the social network owe up to $13 bιllιon in bank loans to complete the contract.
Bloomberg’s sources say that Elon Musk’s financial advisers are considering reversing previous high-interest lines of credit with mortgages based on Tesla stock.
To date, Elon Musk has sold nearly $40 million worth of Tesla stock, a move that has sent electric vehicle stock prices to a two-year low. In the face of market volatility, Elon Musk had to announce a pause in selling Tesla shares for at least 2 years to stabilize investor sentiment.
As a reminder, most of Elon Musk’s wealth is in the form of Tesla shares. Figures on the Bloomberg bιllιonaires Index show that the Tesla founder has lost $ 132 bιllιon in total value so far this year, erasing all of the gains of 2021 and pushing him from the position of the richest person. world.
Currently, Elon Musk only has a total net worth of 139 bιllιon 𝚞ᵴԀ, the lowest level in more than 2 years and ranked 2nd in the rankings of the Bloomberg bιllιonaires Index.
Going back to Elon Musk’s cautionary tale, this isn’t the first time the Tesla founder has shown signs of regret selling shares. In early December 2022, this bιllιonaire also advised against taking out a mortgage with shares.
“When the macro economy is at risk, everyone understands that the wisest thing to do is to avoid taking on equity-backed loans with companies, because stock prices can move in a different direction from the long-term potential of the company. them,” Elon Musk posted on Twitter.
However, according to the US Securities and Exchange Commission (SEC) filing, as of April 2022, Elon Musk has mortgaged 92 million Tesla shares.
Returning to the “All in” program, Elon Musk said that people are exaggerating the possibility of a recession. This bιllιonaire believes that the economy will probably only slow down like 2009.
“My most optimistic prediction is that we will have a crisis within 1-1.5 years and then start to have a transition in the second quarter of 2024. Growth doesn’t last forever, and neither do recessions, they can’t last long, “said Elon Musk.