- tech360.tv
Elon Musk Secured $1 Billion Loan from SpaceX During Twitter Acquisition
Updated: Jan 8
In a recent report by the Wall Street Journal, it has been revealed that Elon Musk borrowed a staggering $1 billion from SpaceX, the aerospace company he founded, around the same time he was finalising the acquisition of Twitter, now known as X, for $44 billion.
The loan was approved by SpaceX and was backed by Musk's own SpaceX stock.
According to documents cited in the report, Musk drew down the entire $1 billion loan in October, coinciding with his ownership takeover of Twitter. This borrowing arrangement is not new for Musk, as he has previously used his shares in his companies, including Tesla, to secure loans from banks. However, this time, privately held SpaceX served as his lender.
The loan from SpaceX adds another layer of complexity to Musk's financial situation, as he navigates the acquisition of Twitter and manages his various business ventures. Musk is the largest shareholder of SpaceX, holding a 42% stake and nearly 79% of its voting power as of March, according to a filing with the Federal Communications Commission. The company had $4.7 billion in cash and securities at the end of last year.
Both SpaceX and X, formerly Twitter, have not yet responded to Reuters' request for comment on this matter.
This news comes after Musk made headlines in 2022 for selling a significant portion of his Tesla shares, amounting to approximately $40 billion, both before and after the Twitter deal. These sales raised concerns among investors in the electric vehicle maker.
In April 2023, Tesla disclosed that it had implemented stricter rules regarding Musk's use of his stake in the company to borrow money, as reported by the Wall Street Journal.
Elon Musk's borrowing of $1 billion from SpaceX during the Twitter acquisition has raised eyebrows and added complexity to his financial situation. The loan was approved by SpaceX and backed by Musk's own SpaceX stock.
Musk drew down the entire $1 billion loan in October, coinciding with his ownership takeover of Twitter. This borrowing arrangement is not new for Musk, who has previously used his shares in his companies to secure loans. Both SpaceX and X have not yet commented on this matter.
Elon Musk borrowed $1 billion from SpaceX during the same month he acquired Twitter, adding complexity to his financial situation.
The loan was approved by SpaceX and backed by Musk's own SpaceX stock.
Musk drew down the entire $1 billion loan in October, coinciding with his ownership takeover of Twitter.
Source: Reuters