Can Elon Musk make Twitter numbers work?

However, interest rates on loans reflect the risk of not being redeemed. Banks don’t hold onto the loans but sell them to other market investors, so if Twitter can’t pay its debts, Mr. Musk will either have to pay those investors, perhaps by selling more Tesla shares, or he may give up part of his ownership to Twitter, reducing his stake.

Tesla’s market capitalization was $902 billion as of Friday, but its shares are down about 20 percent since Mr. Musk first revealed, in early April, that he had bought a large stake in Twitter. If Twitter’s finances were headed south, that would force Mr. Musk to sell more Tesla shares to pay off Twitter debt or pledge more shares as security for his personal loans, it could put further pressure on Tesla’s share price. Mr. Musk does not take a salary from Tesla but is paid in shares that are issued based on performance milestones that include the company’s stock price.

since mr. Musk first disclosed his stake, and the Nasdaq tech index fell more than 10 percent, making his bid seem even more generous. “It’s a high price and your shareholders will love it,” he said. Musk said in A message to the Twitter board of directors. Although the shares of the social media company have traded higher than Mr. Musk’s bid just six months ago, fell a lot from that price early this year and seems unlikely to return to those highs anytime soon.

Mr. Musk considered teaming up with investment firms in his bid to buy Twitter, which would reduce the amount of money he would have to invest personally. It could still partner with a business or other investors such as family offices to help raise the money, according to two people familiar with the discussions.

Thoma Bravo, the technology-focused acquisition company, has expressed a willingness to provide some funding, but no decision has yet been made. Apollo, an alternative asset manager, also considered a potential deal in which it would extend a loan on favorable terms.

If mathematics becomes unpalatable for the master. Musk, he has a way out: $1 billion breakup fee. For a man with a fortune estimated at over $200 billion, that’s a small price to pay.