Elon Musk borrowed $1 billion from SpaceX around the same time he bought Twitter, report says
Alain Jocard/AFP via Getty Images
- Elon Musk took out a $1 billion loan from SpaceX the same month he bought Twitter, per the WSJ.
- His Twitter acquisition was also funded by bank loans backed by Tesla stock.
- Musk previously borrowed $500 million from his space company between 2018 and 2020.
Elon Musk took out a $1 billion loan from SpaceX last October, the same month he took over Twitter, now known as X, according to documents cited by The Wall Street Journal.
The loan was backed by some of Musk's shares in SpaceX, and he paid it back with interest shortly afterwards, in November, per the Journal.
But the deal still drew on a significant amount of the company's finances, as SpaceX had $4.7 billion in cash and securities on hand at the end of last year, the WSJ reported.
The world's richest person also sold almost $4 billion of Tesla stock in November. In total, Musk sold about $23 billion of his shares in the electric-vehicle company last year to help finance his acquisition of Twitter.
About $13 billion of Musk's $44 billion deal to take over Twitter was also funded by Wall Street banks like Morgan Stanley and Bank of America. Those loans were backed by some of Musk's Tesla stock.
That debt is being repaid by Twitter, rather than Musk, with interest payments equal to about $1.5 billion a year.
Fidelity, which owns a stake in Twitter, has routinely lowered the company's value — estimating in May that it's worth just one-third of what Musk originally paid.
And this wasn't the first time that Musk took out a loan from SpaceX, either. He previously told the Journal that he borrowed $20 million from it in 2009 to help fund Tesla.
According to the WSJ's latest report, he also took out three loans worth $500 million from SpaceX between 2018 and 2020, before repaying it at the end of 2021.
And Tesla is reportedly facing a federal investigation for "Project 42" — which is believed to involve building a glass house for Musk.
SpaceX did not immediately respond to Insider's request for comment.
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