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Tesla has old tally of Musk’s pledged shares, key to margin loan

Tesla Inc. said in a securities filing on Monday that it needed more time to file regular disclosure before its annual meeting of shareholders.

The company may also need to revise a closely watched section on Elon Musk’s pledged shares, which appears to contain outdated information.

Tesla’s amended annual report shows stock counts and top investors’ options through Dec. 31, and other footnotes refer to dates in 2022. But the portion showing Musk’s ownership, exercisable options and pledged shares refers to December 31, 2020, the same date of last year’s annual report. The company previously updated the numbers to June 30.

Tesla did not immediately respond to a request for comment sent through its investor relations portal.

The number of Tesla shares pledged by its CEO has taken on added significance due to the $12.5 billion margin loan he arranged to help fund his purchase of Twitter Inc. It obliges Musk, 50 years, to pledge Tesla stock worth $62.5 billion. The debt is secured by this stock, which can be seized by lenders in the event of default.

The discrepancy itself won’t affect Musk’s Twitter deal. But after his sale of around $8.5 billion worth of Tesla stock last week, he had just enough Tesla stock left to secure the new facility, according to Bloomberg’s calculations, although that depends on the stock price. action of the company.

This calculation assumes that Musk has 88.3 million Tesla shares pledged to secure existing debt that would not be available for margin lending — the figure as of June 30. An updated number should have been included in Monday’s filing.

It could be coincidence that Musk had increased his pledged shares to the exact same number it had a year earlier, although the old date in the same footnote seems to suggest otherwise.

© 2022 Bloomberg L.P.