Elon Musk secured a $1 billion mortgage from SpaceX, the corporate he heads as CEO, across the time of his acquisition of the social media platform X, previously referred to as Twitter, The Wall Avenue Journal reported.
The mortgage, backed by his SpaceX inventory, was accredited and drawn down in October 2022 however the motive for buying it stays unknown. Musk promptly repaid the mortgage, together with curiosity, to SpaceX the next month. Musk’s substantial possession of SpaceX permits him to entry loans from the corporate itself, given his 42% stake and vital voting energy.
The unconventional transfer exemplifies how Musk, the world’s wealthiest particular person, has the power to generate money from his varied enterprises with out relinquishing shares, permitting him to fund his numerous initiatives.
Final fall, SpaceX was within the midst of serious investments in its Starship rocket program and Starlink satellite tv for pc web enterprise when Musk borrowed the cash. The $1 billion mortgage briefly redirected a considerable portion of SpaceX’s capital, regardless of the corporate’s ongoing involvement in varied area missions for NASA and the Pentagon, the WSJ added.
Elon Musk took out a $1 billion mortgage throughout the identical month he acquired X. Chesnot | Getty Pictures.
On the finish of final yr, SpaceX reported $4.7 billion in money and securities, with the mortgage representing 11% of the $9 billion in fairness it had raised since 2009.
In November, Musk not solely repaid the mortgage but additionally bought almost $4 billion value of Tesla inventory, following an analogous inventory sale within the subsequent month. The gross sales amounted to roughly $39 billion over greater than a yr. Musk additionally talked about paying over $11 billion in taxes for 2021 and contributed round $25 billion in money towards his $44 billion acquisition of X in late October.
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