He had to sell some Tesla shares because he reached the max borrowing limit against his Tesla shares that was allowed. Once he was forced to sell shares he had to pay a lot in taxes. This shows the mega wealthy can pay taxes and not become poor. We should learn from this lesson and tax the .01% of society.
Elon Musk is limited to borrowing against pledged Tesla shares, with the total loan amount capped at the lesser of $3.5 billion or 25% of the value of the pledged shares. Musk's current holdings of about 411 million shares and 238.4 million pledged shares as of April 6, 2023.
Here's a breakdown:
25% Loan-to-Value Limit:
Tesla's policy caps the loan amount Musk can take out based on a percentage of the value of his pledged Tesla shares.
$3.5 Billion Dollar Cap:
Musk's borrowing is also limited to a total of $3.5 billion.
Pledged Shares:
Musk currently has 238.4 million shares pledged as collateral for his loans.
Overall:
Musk is borrowing against a portion of his Tesla stock holding, subject to the limits set by the company policy.
