[URSpider94]

Assuming he is buying newly-issued shares from Tesla, then the money goes directly into their treasury. So, the company will have $20MM more in cash than it did the day before.

[nathanvanfleet]

He is still getting something out of that transaction. That's like saying buying food at a restaurant is a donation.

[cpuguy83]

I'm no finance person, lawyer, or anything like that. But I suspect that he can't just give Tesla money and it has to be in exchange for something, such as stock.

[manquer]

It will cost the company 20 million yes but will not affect the free cash flows

[Phenomenit]

If it's newly issued the price will be dilution of the other shareholders stock. I guess it's a smallest burden on Elon and the rest of the shareholders.

[RhodesianHunter]

And all existing shareholders will be diluted by the issuance of those shares.

[peeters]

The shares would lose value via dilution or via a new $20 million debt, this is just an easy way to get the cash on hand.