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Elon Musk’s Twitter funding puts more risk than his shares in Tesla

The CEO of Tesla Inc. For years, Elon Musk has intertwined his personal business ventures with his stake in the carmaker. Using these assets to help fund his $ 44 billion Twitter purchase takes this connection to a deeper level.

A key part of the financing plan includes borrowing $ 12.5 billion from loans secured by Tesla shares worth more than $ 62.5 billion that Mr. Musk owns – or about 40% of his stake at a closing price in Wednesday of $ 881.51. Tesla and several banks have introduced rules that require it to provide more collateral if the company’s stock prices fall.