Mark Moss breaks down how Elon Musk lost $12 billion by borrowing against Tesla shares to buy X, then selling those shares when the price dropped and margin calls hit. Moss argues Musk should have rented liquidity instead of selling under pressure.
Elon Musk lost over $12 billion in just the last couple years because he failed to do this one thing. What am I talking about? He went to borrow against his Tesla stock to buy X. But the problem is that Tesla stock was going down at the time he was trying to do it and he had to post more collateral. So he decided to sell the Tesla stock instead. How much will Tesla stock eventually be worth one day? It's cost him $12 billion in just a couple years, but eventually it costs him $42 billion, $64 billion. Eventually it's going to be A trillion dollars that this one move would've cost him. Let this be a lesson to you. Elon Musk is the example that you can follow. This is why we don't want to sell our assets. We want to rent the liquidity against them instead.
