Elon Musk Secured $1B Loan From SpaceX In Same Month Of Twitter Acquisition: Report

Tesla Inc TSLA CEO Elon Musk secured a $1 billion loan from his own company, SpaceX, around the time he was acquiring the social media company X (formerly known as Twitter,) The Wall Street Journal reported.,

Backed by Musk’s SpaceX stocks, the loan was approved and drawn down completely in October. However, the exact reasoning behind this debt acquisition remains unclear.

Musk promptly repaid the loan, returning $1 billion plus interest to SpaceX in November. Both Musk and SpaceX have not responded to requests for comments on this transaction.

This is not the first time Musk has leveraged his shares for loans. The CEO has historically borrowed against his stakes in his companies, including Tesla, without having to relinquish any shares permanently.

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As SpaceX’s largest shareholder, Musk controls a 42% stake and nearly 79% of its voting power. This position allows him almost certain approval for any loan requests from the company.

This borrowing occurred amidst significant investments by SpaceX in its Starship rocket program and the Starlink satellite-internet business. The loan represented a considerable portion of capital for the company, which is integral to numerous key space missions.

In November, Musk also sold nearly $4 billion worth of Tesla stock, part of an approximately $39 billion sell-off over more than a year.

The Tesla CEO has previously stated he expects to pay over $11 billion in taxes for 2021, and he provided roughly $25 billion in cash as part of his $44 billion deal to acquire Twitter.

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