Tesla Puts Stricter Cap on Musk’s Borrowing With Pledged Shares

Tesla Inc.’s board amended its policy around pledging shares, capping the total loan amount that Elon Musk can collateralize with his stake at the lesser of $3.5 billion or 25% of the value of the stock.

In a proxy statement filed Thursday, the electric-car maker described a policy that deviates from previous filings and singles out Musk, Tesla’s chief executive officer.

The maximum loan amount secured by pledged shares can’t exceed “with respect to our CEO, the lesser of $3.5 billion or 25% of the total value of the pledged stock,” the filing said. In the previous proxy statement, ...