π Elon Musk Faces Margin Call on Loan Used to Purchase Twitter
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Tesla (US:TSLA) Chief Executive Officer Elon Musk had to meet a margin call from creditors holding the stock as collateral for loans financing his Twitter acquisition, Barron's reported on Thursday.
A margin call is triggered when the value of the collateral securing the loan falls below an agreed ratio, and more cash or stock needs to go to the lender to maintain the account in balance. The lender makes a margin call to protect itself from the risk of the investor defaulting on the loan.
Musk has been active on Twitter for years, frequently using the platform to make announcements about his various companies and projects.
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