Elon Musk says it's wise to avoid using margin loans on any company

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Elon Musk says it's wise to avoid using margin loans on any company

Elon Musk, a Reuters chief executive, said it was generally wise to avoid using margin loans on any company when there are macroeconomic risks involved, in response to a question on Twitter about the electric-vehicle maker's stock performance.

When there are macroeconomic risks, it is wise to avoid using margin loans on any company, as stocks may move in ways that are not linked to their long-term potential, Musk tweeted late on Thursday, without naming any companies.

According to a Bloomberg News report, Musk's bankers are considering giving him new margin loans, backed by Tesla's stock, to replace some high-interest debt on his Twitter deal.

Musk completed the Twitter acquisition with $13 billion in loans from banks and $33.5 billion in equity commitment.

As of Wednesday's close, Tesla's shares have lost more than 10% of their value this week, and are down over 56% this year, amid concerns about disruptions at its factory in Shanghai.