Elon Musk withdrew a $1 billion loan from SpaceX, the billionaire’s two-decade-old rocket company, at about the same time that he bought Twitter, now known as X, for $44 billion.
According to reports, SpaceX approved the $1 billion loan in October and Musk drew it all down in the same month. The loan was secured by some of Musk’s SpaceX stock. In October, Musk acquired ownership of Twitter. This news was first published by Wall Street Journal.
According to the story, Musk has agreements with banks to borrow money against the shares of his firms, including electric vehicle manufacturer Tesla, while privately held SpaceX has acted as his lender. The report also stated that Musk’s financial condition was further complicated by having to pay for Twitter.
According to a filing with the Federal Communications Commission, Musk is SpaceX’s largest shareholder with a 42% holding and about 79% of its voting power as of March. The article reported, citing papers, that SpaceX had $4.7 billion in cash and securities on hand at the end of the previous year.
