Tesla (TSLA -3.9%) traded lower on Thursday after Elon Musk offered to buy Twitter in a deal that could theoretically lead him to sell or borrow against his shares of Tesla or SpaceX (SPACE).
Bloomberg estimated that Musk has already borrowed about $20 billion against his Tesla (NASDAQ:TSLA) and SpaceX (SPACE) shares, which gives him another $35 billion remaining that he can pledge in a loan against the two companies he controls.
Analysts do not see a large sale of TSLA shares by Musk as the likeliest outcome of the Twitter pursuit, but call it a near-term overhang. There is also little indication that he wants to reduce his SpaceX (SPACE) stake.
"Musk’s 'best and final' $43 billion non-binding offer has numerous conditions, including completion of financing, which we believe give it a low probability of success," noted Bloomberg Intelligence credit analyst Robert Schiffman on the development.
Musk could also partner with a prominent firm or investor group in the Twitter buyout scenario to avoid selling a large number of shares.
Catch up on all the latest Musk-Twitter developments.