Around 10 French clients with leases on Teslas are suing the US carmaker, run by Elon Musk, because they consider the vehicles to be "extreme-right" symbols, the law firm representing them said on Wednesday.

Around 10 French clients with leases on Teslas are suing the US carmaker, run by Elon Musk, because they consider the vehicles to be “extreme-right” symbols, the law firm representing them said on Wednesday.

  • Knock_Knock_Lemmy_In@lemmy.world
    English
    5·
    5 days ago

    Musk has pledged $62.5 billion in Tesla stock as collateral for margin loans of $12.5 billion.

    Giacomo Santangelo, a senior lecturer in economics at Fordham University said “A 20% stock decline on a 60% loan-to-value loan means the borrower must immediately post additional collateral or face forced liquidation. This creates cascade risk, where small declines trigger margin calls, forcing either more pledging or open-market sales, putting more pressure on the stock.”

    https://www.forbes.com/sites/eriksherman/2025/06/05/does-elon-musks-borrowing-show-a-super-low-tesla-stock-valuation/

    • Vinstaal0@feddit.nlEnglish
      2·
      5 days ago

      Ow right, I forgot the US is a corrupt nation and allows bullshit like this.

      Then again, it is most likely his personal holding/company which has the loans and stock and he has 100% of the shares in that company which will go bankrupt if his loans ever default(? I think that;s the right word?).

      • Knock_Knock_Lemmy_In@lemmy.world
        English
        2·
        5 days ago

        Yes. His financial advisors have probably limited his liability. He can lose the value of his holdings, but is unlikely to go into debt himself.