Elon Musk Reportedly Borrowed  Billion From SpaceX During Twitter Deal

Elon Musk withdrew a mortgage of $1 billion (roughly Rs. 83,062 crore) from SpaceX – the two-decade-old rocket firm run by the billionaire – across the identical time he was buying Twitter, now often called X, for $44 billion (roughly Rs. 3,65,442 crore), the Wall Street Journal reported on Tuesday. SpaceX permitted the $1 billion (roughly Rs. 8,30,625 crore) mortgage, which was backed by a few of Musk’s SpaceX inventory, in October and Musk drew all of it down the identical month, in line with the report, citing paperwork. Musk took possession of Twitter in October.

Musk has had preparations with banks to borrow in opposition to his shares in his corporations, together with electrical autos (EV) maker Tesla, whereas privately held SpaceX has served as his lender, the report mentioned, including that paying for Twitter additional difficult Musk’s monetary state of affairs.

Musk is SpaceX’s largest shareholder with a 42 % stake and nearly 79 % of its voting energy as of March, the report mentioned, citing a submitting with the Federal Communications Commission. SpaceX had $4.7 billion (roughly Rs. 39,034 crore) in money and securities readily available on the finish of final yr, the paper mentioned, citing paperwork.

Both SpaceX and X didn’t instantly reply to a Reuters request for remark.

Elon Musk offered a large chunk of his Tesla shares in 2022, each earlier than and after the Twitter deal, bringing his complete gross sales to about $40 billion (roughly Rs. 3,32,172 crore) which annoyed traders within the EV maker.

In April 2023, Tesla disclosed that it had additional tightened guidelines round Musk utilizing his stake within the firm to borrow cash, in line with the WSJ report.

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

© Thomson Reuters 2023  


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