Elon Musk Borrowed $1 Billion From SpaceX in Same Month of Twitter Acquisition

livemint.com:

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 company formerly 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, the electric-car maker where he is CEO. At privately held SpaceX, the company itself has served as his lender. Musk is by far SpaceX’s largest shareholder, controlling a 42% stake and almost 79% of its voting power as of March, according to a SpaceX filing with the Federal Communications Commission.

If he wants to take out a loan from SpaceX, he almost certainly can. The borrowing last year occurred as SpaceX made big investments in its Starship rocket program and in Starlink, a satellite-internet business. The company has raised large sums from investors to help pay for both, and Musk has urged employees to mind their spending.