Part 3/9:
He emphasizes that perhaps the greatest disaster for Tesla's investors would be to fall into the hands of what he describes as a hero—highlighting the risk of idolizing CEOs rather than scrutinizing their actions and the company's fundamentals.
Margin and the Risk of a Downturn
One of Leo’s key points revolves around his position's margin status. He clarifies that he has no margin—meaning he hasn't borrowed money to buy Tesla shares—so he is not at risk of forced liquidation if the stock dips. This is crucial because, historically, when Elon Musk sells significant quantities of Tesla stock, the price tends to decline—often around 8%, for example, when Musk sells $4 billion worth of shares.