Elon Musk recommends not to use margin loans as financial hedging

In unpredictable stock markets, Elon Musk has recommended consumers not to use margin loans as a kind of financial hedging.

Tesla shares have previously been pledged as security for such loans by Musk.

Musk’s bankers are thinking of replacing some of the high-interest debt he piled up on Twitter with new margin loans secured by Tesla stock.

Elon Musk has stated that he will no longer sell Tesla stock and that the halt will last approximately two years. He’s also sold roughly $40 billion in Tesla stock, helping to drive the stock down to a two-year low.

Musk again restated his conviction that the economy is overdue for a recession, which may be on the scale of the one experienced in 2009.