A shareholder proxy filed by Tesla Inc. on Thursday, Beijing time, April 7indicates that the company has pledged $44 billion (currently about RMB 302.72 billion) of stock worth of Tesla in order to obtain personal loans from the U.S. As of Thursday, April 7, Beijing time, the Securities and Exchange Commission will hold its next meeting. There will be new restrictions placed on his activities based on Tesla’s new policy in the future.
In a filing with the SEC, Musk is shown to hold around 411 million shares of Tesla stock, of which 238.4 million shares have been pledged as collateral for personal loans acquired by Musk. According to the closing price of Tesla’s shares on Thursday, which was $185.06, those pledged shares are worth around $44 billion at current market prices. Tesla’s previous policy allowed Musk to raise a maximum of $11 billion in debt (currently about 75.68 billion yuan) under Musk’s new policy.
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It was announced on Thursday that Tesla’s board amended its policy on pledged shares so as to specifically limit Musk’s total borrowing amount against his Tesla shares to the lesser amount of either $3.5 billion (currently about RMB 24.08 billion) or 25 percent of the value of the company’s stock. There was no such restriction in place for Musk before this. It has also been decided that the maximum amount that Tesla directors and executives (other than Musk) can borrow against the pledged stock will be reduced from 25 percent to 15 percent of the value of the pledged stock as a result of the new policy.
To reduce the risk of the board being forced to sell the pledged stock, the company has established a policy limiting the pledging of Tesla stock by its directors and officers. This policy will prevent directors and officers from being forced to sell the pledged stock, Tesla stated in the filing. In its proxy statement, the company notes that the number of shares pledged does not indicate the extent to which actual borrowings may be taken on those shares as of the date indicated and that these borrowings may be considerably lower than the value of the pledged shares.
