October 3, 2023

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Elon Musk Borrowed $1 Billion From SpaceX That Same Month From Twitter Deal – WSJ

Elon Musk Borrowed $1 Billion From SpaceX That Same Month From Twitter Deal – WSJ

The CEO of SpaceX, Tesla and owner of Twitter, gestures while attending the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France, June 16, 2023. REUTERS/Gonzalo Fuentes Obtain licensing rights

Sept. 5 (Reuters) – Elon Musk withdrew a $1 billion loan from SpaceX — the two-decade-old rocket company run by the billionaire — around the same time he acquired Twitter, now known as X, for $44 billion, Wal . Street Journal mentioned Tuesday.

SpaceX approved the $1 billion loan, which was backed by some of Musk’s SpaceX stock, in October, and Musk withdrew it entirely that same month, according to the report, citing documents. Musk acquired Twitter in October.

The report said Musk had arrangements with banks to borrow against his shares in his companies, including electric car maker Tesla (TSLA.O), while privately owned SpaceX acted as his lender, adding that paying for Twitter further complicates the matter. . Musk’s financial situation.

Citing a filing with the Federal Communications Commission, the report said Musk is the largest shareholder in SpaceX with a 42% stake and nearly 79% of its voting power as of March. Citing documents, the newspaper said SpaceX had $4.7 billion in cash and stock at the end of last year.

SpaceX and X did not immediately respond to a Reuters request for comment.

Elon Musk sold a large portion of his Tesla stock in 2022, before and after the Twitter deal, bringing his total sales to about $40 billion, frustrating investors in the electric car maker.

In April 2023, Tesla revealed that it had further tightened the rules around Musk using his stake in the company to borrow money, according to a Wall Street Journal report.

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In addition to Tesla and X, Musk is a co-founder of brain chip startup Neuralink.

(This story has been reworded to fix a typo in paragraph 6 and remove an odd word in paragraph 7)

(Reporting by Nilotpal Timsina and Mrimai Day in Bengaluru; Reporting by Mohamed for The Arabic Bulletin) Editing by Sherry Jacob-Phillips, Eileen Soering and Rashmi Aish

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