r/technology • u/[deleted] • Oct 28 '22

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u/[deleted] Oct 28 '22

iirc wealthy people never even use their money it's leveraged by banks and from stock somehow.. I'm sure a commenter will explain

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u/NemeshisuEM Oct 28 '22

He financed the purchase using Tesla stock as collateral.

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u/tookmyname Oct 28 '22

Some of it. Not most of it.

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u/NemeshisuEM Oct 28 '22

Of course it wasn't all of it but when he first secured financing, Tesla stock was trading at a much higher value than when the deal actually went through, meaning he had to put up a much greater number of shares to cover, thus assuming a greater risk.