Summary: Tesla CEO Elon Musk borrowed $1 billion from his rocket company, SpaceX, around the time he bought Twitter last year. The loan, approved SpaceX, was backed Musk’s SpaceX stock, which was fully drawn down and repaid with interest in November.
Elon Musk, the billionaire CEO of Tesla Inc., reportedly borrowed $1 billion from his rocket company, SpaceX, to fund his purchase of Twitter. The loan, which was approved SpaceX, was backed Musk’s own SpaceX stock.
The Wall Street Journal reported that the loan was made in October of last year and was completely drawn down. Documents reviewed the Journal indicate that the loan, along with interest, was repaid in November. The specific reasons for the loan were not detailed in the report.
This unusual arrangement highlights Musk’s close relationship with his other major venture, SpaceX, where he is the largest shareholder. It also demonstrates Musk’s ability to leverage his assets across multiple ventures.
Musk has a net worth of around $44 billion, partly due to his significant holdings in Tesla and SpaceX. By borrowing from SpaceX, Musk was able to access funds to finance his personal interests without impacting Tesla’s finances.
It remains to be seen how this loan arrangement will be viewed investors and regulators, as it raises questions about potential conflicts of interest between Musk’s various business entities. However, at this time, no official statements have been made regarding any investigation or concerns regarding the loan.
Overall, this loan from SpaceX to Elon Musk serves as a reminder of his entrepreneurial spirit and his ability to navigate the complex financial landscape of his multiple ventures.
– The Wall Street Journal