ALBAWABA – Elon Musk took a massive loan from SpaceX around the time he acquired Twitter, now known as X, the Wall Street Journal reported Tuesday.
SpaceX approved the $1 billion loan, as it was backed by some of Musk’s own stock at the company, back in October, according to the report.
Acquiring Twitter further complicated Musk’s financial situation, as he has had arrangements with banks to borrow against his shares in his companies, including electric vehicles maker Tesla. All the while privately held SpaceX has served as his lender, the report said.
Notably, Musk is SpaceX's largest shareholder with a 42% stake and almost 79% of its voting power as of March, as reported by WSJ, 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, the paper said, citing documents.
Musk sold a massive chunk of his Tesla shares in 2022 - Shutterstock
According to Reuters, Musk sold a massive chunk of his Tesla shares in 2022, both before and after the Twitter deal. Overall, he sold about $40 billion in shares, which frustrated investors in the EV maker.
As a result, in April 2023, Tesla announced it had further tightened rules around Musk using his stake in the company to borrow money, according to the WSJ report.
