◆ WSJ NEWS EXCLUSIVE: Elon Musk Borrowed $1 Billion From SpaceX in Same Month of Twitter Acquisition

Author: Editors Desk Source: WSJ:

September 5, 2023 at 21:16

Elon Musk has had much of his wealth tied up in shares in Tesla, SpaceX and other startups. PHOTO: NATHAN LAINE/BLOOMBERG NEWS

Rocket maker has lent the executive money on several occasions over the past few years

Elon Musk tapped SpaceX, the rocket maker he oversees as chief executive, for a $1 billion loan around the time he was acquiring the social-media companyformerly known as Twitter.

The unusual loan is the latest example of how the world’s richest man has drummed up cash from his empire of companies without having to permanently part with shares, enabling him to raise funds for his wide array of endeavors.

SpaceX approved the loan, which was backed by some of his SpaceX stock, in October, and Musk drew all of it down the same month, according to documents reviewed by The Wall Street Journal.

It couldn’t be determined why he took on the debt. He paid the loan back shortly after he borrowed the money, returning $1 billion with interest to SpaceX in November. Musk and SpaceX didn’t respond to requests for comment.

For years, Musk has had arrangements with banks to borrow against his shares in his companies, including

Tesla TSLA 4.69%increase; green up pointing triangle, the electric-car maker where he is CEO. At privately held SpaceX, the company itself has served as his lender.