And if he gets called, after a high selloff? (TSLA is known for its high volatility, many provoked by Musk itself.)
I suppose it’s overcollateralized. Or maybe not, and if it isn’t at least 100% collateralized, there will be a high leverage factor.
A lot of leveraged investors (giving shares as collateral) get burned. The last known whale, Hwang/Archegos Capital Management, had a huge impact in his family office and in the investment banks that allowed his leveraged trades (today, Hwang was arrested).
We don’t know if Musk have given some stocks as collateral on other previous situations.
For example, to finance his other projects and even to buy meme cryptos.
Net worth isn’t necessarily 100% accepted as collateral. As lenders can refuse some types of collateral. (E.g. having a loan and giving cryptos as collateral or if accepted, as it is very volatile, the lenders could demand a higher overcollateralization. Or for example, other iliquid or exotic assets given as collateral.)
Bottom-line. Musk could be worth 264bn, but lenders only accept a % of it as potential collateral (not considering/accepting some as collateral).
PS: Banks have regulations that classifies their balance sheet assets according to their risk, with risky assets penalizing the banks’ capital requirements/stress tests.
Does it slightly annoy you that Musk has become bigger than both TWTR (and also TSLA). Both have become what I now call “celebrity stocks”. The man himself has become a bigger spectacle than the actual companies.
That said I know many will gain a decent profit once the sell off takes place, myself included.