Elon Musk Borrowed Money from SpaceX to Buy Twitter
It turned out that Elon Musk borrowed money from SpaceX to cover the necessary costs when he bought Twitter. Here are the details about the incident!
Elon Musk borrowed $1 billion from SpaceX the same month he bought Twitter (now known as X) for $44 billion, the Wall Street Journal reports.
According to the report, the loan was approved in October and backed by Musk’s SpaceX shares. Musk completed the withdrawal of the loan in the same month he took control of Twitter.
Elon Musk denies the allegations, but the truth is out
Musk often uses shares in his companies, including Tesla, as collateral for loans, and this has been criticized by many people and investors. Previous allegations that Elon Musk used SpaceX to buy Twitter seem to have been confirmed with this news.
As of March, Musk was the largest shareholder of SpaceX, holding 42% of the shares and about 79% of the voting power. SpaceX had about $4.7 billion in cash and securities at the end of the previous year.
Investors Uncomfortable with Musk’s Actions
In 2022, Elon Musk sold a significant portion of his Tesla shares before and after the Twitter deal, totaling nearly $40 billion in sales, which worried investors in the electric car maker. In April 2023, Tesla introduced stricter rules on Musk using his shares in the company as collateral for borrowing.
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