TECH - Elon Musk Secured $1B Loan From SpaceX In Same Month Of Twitter Acquisition: Report | Benzinga
Tesla Inc (NASDAQ: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 ...