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Elon Musk's Interest Rate to Borrow is 14%

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    Elon Musk's Interest Rate to Borrow is 14%

    It would also alleviate pressure on Tesla’s stock, which is the cornerstone of Musk’s $216 billion fortune.


    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.

    #2
    I don't want to know the answer to that question.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      I wish we would just get it over with already. I mean at this point, it's inevitable that a recession is coming right?

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