December 09, 2022

Story: Divya Sinha

A Twitter user asked Elon Musk about the reason for what dragged down the $TSLA stock this year and what is he expecting next.

Responding to this Elon replied by saying that when there are macroeconomic risks, it is generally wise to avoid using margin loans.

He added saying stocks may move in ways that are decoupled from their long-term potential.

This comes after Elon Musk's bankers weighed for new margin loans backed by Tesla to reduce Twitter’s debt.

He had taken over the microblogging platform in a $44 bn Twitter deal.

Musk completed its acquisition of Twitter with a $13 billion bank loan and a $33.5 billion equity commitment.

Shares of Tesla are down by 56% this year till date.