According to a report recently published by the Wall Street Journal, Elon Musk borrowed $1 billion from SpaceX the same month he acquired Twitter for $44 billion.
The loan was approved by the rocket company and secured with part of the shares of Musk, who remains SpaceX's largest shareholder. In 2022, the billionaire entrepreneur also sold part of his shares in Tesla, frustrating many of the electric vehicle company's investors.
The purchase of Twitter complicated Musk's financial situation
Although led by Elon Musk, SpaceX has 58% of its shares spread among other shareholders. Still, Musk owns nearly 79% of the company's voting power, according to the document filed with the Federal Communications Commission. The same report recorded that, at the end of last year, SpaceX's total capital was $4.7 billion in cash and securities.
According to the Wall Street Journal, the loan granted by Musk to SpaceX was approved in October 2022. The amount was fully drawn down and the entrepreneur acquired the social network Twitter, now X, that same month. But the U.S. newspaper notes that the purchase of the platform has complicated Musk's financial situation, especially considering that SpaceX was not the only one of the entrepreneur's companies to see its finances involved in the multibillion-dollar transaction.
Tesla created a rule to protect itself from Musk's loans.
During the same period, Musk allegedly entered into agreements with different banks to obtain other loans using his shares in different companies as collateral. Among them was Tesla. With the capital closed, SpaceX would have served him as a creditor. Also in 2022, before and after buying Twitter, Musk sold a large part of his Tesla shares.
In total, it is estimated that his total sales in the electric car company amounted to nearly $40 billion. According to the U.S. newspaper, the entrepreneur's attitude has greatly frustrated the company's investors. In April 2023, Tesla announced stricter rules around any attempt by Musk to use his stake in the company to borrow money.
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