Re:Tesla Faces U.S. Criminal Probe Over Musk Statements
by yread on Tuesday September 18, 2018 @04:40PM
(#18018919)
Does that mean his debt increased by 7M shares? At ~250 a piece? Almost 2B$? Is that what he actually owes or is it more like a line-of-credit up to 2B$ He's burning money faster than Tesla!
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Re:Tesla Faces U.S. Criminal Probe Over Musk Statements
by toast0 on Wednesday September 19, 2018 @02:47AM
(#18022256)
There's a current tax dodge where high net worth people get pledged asset loans and spend that, because loan proceeds aren't taxable, but selling stock is. Selling stock in a company you're the CEO of also can be bad PR, but pledging it might be less bad.
OTOH, selling stock to redeem a pledge could be scrutinized for insider trading, and such a large amount could move the stock, so if I were loaning the money, I would require some large multiple of the loan in pledges -- enough so that I would expect not to have to call the pledge, because I know it will be a disaster if I do.