Elon Musk borrowed against Tesla shares to buy X, then had to sell shares at a loss when Tesla's stock fell. Mark Moss calculates the immediate loss at over $12 billion and warns the opportunity cost could eventually reach trillions. The lesson: don't sell assets 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 cost 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.
