Musk increased the share of his Tesla holding that he’s pledged as collateral for personal loans to 54% at the end of 2019, the company disclosed in a regulatory filing Tuesday. That compares with 40% at the end of 2018, when the carmaker last shared the size of Musk’s pledging.
Tesla said in the filing that the company decided not to renew its directors’ and officers’ liability policy for 2019-2020 due to “disproportionately high” premiums quoted by insurers. Musk, 48, instead agreed to personally provide coverage for a year. The carmaker’s board concluded the arrangement with the chief executive officer would not impair the independent judgment of his fellow directors.
There’s an array of ongoing securities lawsuits involving Tesla, its board or Musk, including litigation relating to the
While Tesla and Musk
The SEC also sent Tesla a subpoena in December seeking information on “certain financial data and contracts including Tesla’s regular financing arrangements,” the company
The amended annual report from Tesla shows Musk had pledged 18.5 million shares as of Dec. 31, an increase of about 5 million shares compared with a year earlier. His overall stake in Tesla had a value of about $27 billion at Monday’s close, and the market value of his pledged shares would be roughly $15 billion assuming the position hasn’t changed this year.
While it’s not uncommon for the ultra wealthy to borrow against their stock, the amount pledged by Musk trails only
Tesla’s press office didn’t immediately respond to a request for comment.
(Updates with litigation starting in the fourth paragraph)
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