Elon Musk borrowed $1 BILLION from SpaceX in the same month as his $44B Twitter takeover – and he paid it back with interest
- The world’s richest man took out the mammoth loan in October last year
- SpaceX approved the loan, which was secured against his stocks in the business
- It came around the same time Musk purchased Twitter, now X, for $44 billion
Elon Musk borrowed $1 billion with SpaceX in the same month as his $44 billion Twitter takeover – and he paid it back with interest, new documents reveal.
The Twitter tsar, who rebranded the platform as X, took out the mammoth loan in October, according to papers reviewed by the Wall Street Journal.
SpaceX approved the loan, which was secured against his stocks in the company, and Musk repaid it with interest the following month.
The deal is the latest example of the world’s richest man generating ginormous sums through loans without having to sell any of his assets.
It came in the same month Musk generated $46.5 billion in equity and debt financing to purchase X, covering the $44 billion price-tag plus closing costs – the biggest acquisition financing ever put forward by a single person.
Elon Musk borrowed $1 billion with SpaceX in the same month as his $44 billion Twitter takeover – and he paid it back with interest, new documents reveal
SpaceX approved the loan, which was secured against his stocks in the company, and Musk repaid it with interest the following month
Musk is SpaceX’s largest shareholder with a 42% stake and almost 79% of its voting power as of March, the report said, 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.
Ahead of his Twitter purchase, the 52-year-old billionaire sold a massive chunk of his Tesla shares in 2022, bringing his total sales up to around $40 billion, frustrating investors in the EV maker.
He secured a debt commitment letter from Morgan Stanley Senior Funding to the tune of $13 billion in financing.
This was made up of a loan of $6.5 billion, a senior secured revolving facility for $500 million, a bridge loan of up to $3 billion and an unsecured bridge loan for up to $3 billion.
He also got a margin loan commitment letter from Morgan Stanley for $12.5 billion in margin loans. Musk also got $21 billion through equity financing.
The $1 billion loan came in the same month Musk generated $46.5 billion in equity and debt financing to purchase X , covering the $44 billion price-tag plus closing costs – the biggest acquisition financing ever put forward by a single person
The deal is the latest example of the world’s richest man generating ginormous sums through loans without having to sell any of his assets
But he has used ‘a portion’ of his shares in Tesla as collateral in the high-stakes move, which analysts warned could have huge ramifications for the company.
In April 2023, Tesla disclosed that it had further tightened rules around Musk using his stake in the company to borrow money, according to the WSJ report.
DailyMail.com has approached SpaceX for the reasoning behind the $1 billion loan and how much interest was paid in total.
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