Virtually all of his wealth is in the stock of his companies.
He can't sell large amounts of stock in one go or it would trigger the price to crater.
Rich people with lots of wealth tied up in stocks will often borrow money from banks at low interest rates and use stock as collateral. This is common knowledge.
If the stock dips too much, the bank can call in the loan/make him put up more collateral, because the original collateral is worth less.
Elon does not have billions in cash or other liquid capital just sitting around. He would need to sell a lot of stock to see that money and that would cause him a lot of problems.
He can't sell large amounts of stock in one go or it would trigger the price to crater.
Rich people with lots of wealth tied up in stocks will often borrow money from banks at low interest rates and use stock as collateral. This is common knowledge.
If the stock dips too much, the bank can call in the loan/make him put up more collateral, because the original collateral is worth less.
Elon does not have billions in cash or other liquid capital just sitting around. He would need to sell a lot of stock to see that money and that would cause him a lot of problems.