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Elon Musk bemoans selling Tesla stock to buy Twitter – and pokes fun at Michael Burry for deleting his profile

Elon MuskElon Musk.

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  • Elon Musk lamented selling Tesla stock to buy Twitter, and flagged the risks of margin debt.
  • He made light of “The Big Short” investor Michael Burry deleting his Twitter profile this week.
  • Musk has warned stock pickers they face a choppy market and potential recession.

Elon Musk has bemoaned selling Tesla stock to finance his Twitter takeover last year, poked fun at Michael Burry of “The Big Short” fame for quitting the social-media platform this week, and warned stock pickers about the risks of leverage.

Selling Tesla for Twitter

A Twitter user, @WholeMarsBlog, joked on Thursday that they couldn’t believe Musk had acquired Twitter.

“Me neither,” the Tesla, SpaceX, and Twitter CEO replied. “Sucks that I had to sell so much Tesla stock to do so (sigh).”

Musk sold about $23 billion worth of Tesla stock last year, largely to finance his $44 billion Twitter purchase. The sales represent a significant chunk of his estimated $174 billion fortune as of Thursday’s market close.

Tesla shares have rallied 74% to $188 this year, but still trade well below their peak price of over $400 in November 2021.

—Elon Musk (@elonmusk) February 3, 2023

Battling Burry

Burry has publicly bet against Tesla during the pandemic, and accused Musk in late 2021 of selling the automaker’s stock because he knew it was hugely overvalued. The Scion Asset Management boss, who has predicted a stock-market crash and prolonged recession lie ahead, ominously tweeted “sell” and deleted his Twitter profile this week.

“michael burry deleting his account every time he shorts the local bottom will never stop being funny,” a Twitter user who goes by foobar wrote this week. Musk replied with a pair of emojis crying tears of joy, suggesting he didn’t take Burry’s departure from the platform too seriously.

Musk has previously labeled Burry a “broken clock” and teased him for betting against Tesla.

—Elon Musk (@elonmusk) February 2, 2023

Debt dangers

“In turbulent economic times, be wary of using margin loans to buy stock,” Musk tweeted on Thursday. The billionaire was referring to investors borrowing against the value of their shares and other securities to bolster their portfolios.

Musk considered but ultimately didn’t use a $12.5 billion margin loan to acquire Twitter last fall. The decision may have spared him a margin call — a demand from lenders to put up more collateral due to his Tesla stock plunging in value.

The close shave may explain why Musk has been underscoring the risks of margin debt in recent weeks, especially when investors face a volatile stock market and a potential recession.

—Elon Musk (@elonmusk) February 2, 2023


Read the original article on Business Insider