Tesla Inc. Chief Executive Elon Musk has for years intertwined his personal business ventures with his stake in the auto maker. Using those holdings to help finance his $44 billion purchase of Twitter brings that connection to a deeper level.
A key part of the funding plan includes borrowing $12.5 billion from loans backed by more than $62.5 billion worth of Tesla shares that Mr. Musk owns—or about 40% of his stake at Wednesday’s closing price of $881.51. Tesla and several banks have put in place rules that would require him to put up more collateral if the company’s share prices fall.
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