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The businessman withdrew a loan of $1 billion from SpaceX around the same time he was acquiring Twitter.
Elon Musk withdrew a loan of $1 billion from SpaceX — the rocket maker founded by the billionaire — around the same time he was acquiring Twitter, now known as X, for $44 billion, the Wall Street Journal reported on Tuesday.
ADVERTISEMENTSpaceX approved the $1 billion loan, which was backed by some of Musk’s SpaceX stock, in October and Musk drew all of it down the same month, according to the report, citing documents. Musk took ownership of Twitter in October.
The loan is latest in a series of examples of how the world’s richest man raises funds from his own companies to finance his wide array of endeavours.
Musk has made arrangements with banks to borrow against his shares in his companies, including electric vehicles (EV) maker Tesla (TSLA.O), while privately held SpaceX has served as his lender, the report said. It added that paying for Twitter further complicated Musk’s financial situation.
Musk is SpaceX’s largest shareholder with a 42% stake and almost 79% of its voting power as of March, the report said, citing a filing with the Federal Communications Commission. SpaceX had $4.7 billion in cash and securities on hand at the end of last year, according to the paper.
Elon Musk sold a massive chunk of his Tesla shares in 2022, both before and after the Twitter deal, bringing his total sales to about $40 billion which frustrated investors in the EV maker.
In April 2023, Tesla disclosed that it had further tightened rules around Musk using his stake in the company to borrow money, according to the WSJ report.
In addition to Tesla and X, Musk is a co-founder of brain-chip startup Neuralink.
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