It appears Elon Musk has margined more than half of his Tesla shares already and would have been subject to a margin call due to the latest drop in Tesla share stock price if the Twitter deal had gone through. So he's trying either 20-year preferred shares at a 14% rate (with 0.75% rate hikes in year 7, 8, and 9) or warrants for a 10% rate. Goldman Sachs had to pay the investment bank's version of a loan shark to Warren Buffet for 10% rate on the preferred shares of Goldman and give away Goldman warrants during the depths of the Great Recession.
If credit is drying up even for the world's richest man, what does that mean for the rest of us? Maybe I should pull the trigger on my 4% Penfed car loan offer or my 7.9% Penfed personal loan offer.
Bankruptcy Wizard
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