Elon Musk borrowed $1 billion from SpaceX in identical month of Twitter deal – WSJ – Portal

Tesla CEO and Twitter owner Elon Musk attends the VivaTech conference in Paris

The CEO of SpaceX and Tesla and proprietor of Twitter gestures whereas attending the Viva Know-how convention on innovation and startups on the Porte de Versailles exhibition heart in Paris, France, June 16, 2023. Portal/Gonzalo Fuentes ACQUIRES LICENSE RIGHTS

September 5 (Portal) – Elon Musk withdrew a $1 billion mortgage from SpaceX – the billionaire’s two-decade-old rocket firm – across the identical time he bought Twitter, now often known as X, for $44 billion -dollar, the Wall The Avenue Journal reported on Tuesday.

SpaceX accepted the $1 billion mortgage, secured by a portion of Musk’s SpaceX shares, in October, and Musk withdrew it in full that very same month, the report stated, citing paperwork. Musk took over Twitter in October.

Musk made preparations with banks to borrow in opposition to his shares in his firms, together with electrical car (EV) maker Tesla (TSLA.O), whereas privately held SpaceX acted as his lender, the report stated added that paying for Twitter additional complicates Musk’s monetary scenario.

Musk is SpaceX’s largest shareholder, with a 42% stake and almost 79% of its voting rights as of March, the report stated, citing a submitting with the Federal Communications Fee. SpaceX had $4.7 billion in money and securities on the finish of final 12 months, the newspaper stated, citing paperwork.

Each SpaceX and X didn’t instantly reply to a Portal request for remark.

Elon Musk bought a big portion of his Tesla shares in 2022 each earlier than and after the Twitter deal, bringing his complete income to round $40 billion, irritating the electrical car maker’s traders.

In response to the WSJ report, Tesla introduced in April 2023 that it had additional tightened the principles on Musk’s use of his shares within the firm to borrow cash.

Along with Tesla and X, Musk is co-founder of the mind chip startup Neuralink.

(This story has been re-archived to right a typo in paragraph 6 and take away a redundant phrase in paragraph 7.)

Reporting by Nilutpal Timsina and Mrinmay Dey in Bengaluru; Edited by Sherry Jacob-Phillips, Eileen Soreng and Rashmi Aich

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