Elon Musk Guards Tesla Board From Legal Fees After Insurers Shun Risk
- Carmaker didn’t renew liability policy due to high premiums
- CEO increased share pledge to 54% of holding at end of 2019
Elon Musk, CEO of Tesla.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Elon Musk tapped more of his shares in Tesla Inc. last year to unlock some of his wealth and also entered into an unusual arrangement to provide liability coverage for fellow members of the electric-car maker’s board.
Musk increased the share of his Tesla holding that he’s pledged as collateral for personal loans to 54% at the end of 2019, the company disclosed in a regulatory filing Tuesday. That compares with 40% at the end of 2018, when the carmaker last shared the size of Musk’s pledging.