Billionaire Elon Musk reportedly took a loan of $1 billion from SpaceX while acquiring Twitter now called X. Musk took over X in a $44 billion deal.
According to Wall Street Journal, last October, SpaceX approved the $1 billion loan which was backed by some of Elon Musk's SpaceX stock. He drew all of it down in the same month he took ownership of Twitter.
Musk also has an agreement with the banks to borrow against his shares in companies that include Tesla, while SpaceX has served as his lender.
Also Read: Elon Musk's Twitter as 'X' may face a slew of lawsuits
This had put Musk's financial situation in a jeopardy. To fund the acquistion, Elon Musk sold a massive chunk of his Tesla shares in 2022, both before and after the Twitter deal, bringing his total sales to about $40 billion which frustrated investors in the EV maker. In December 2022, Musk sold more than $3.5 billion worth of Tesla Inc. stock in the second round of sales since buying X. He sold nearly 22 million Tesla shares over a three-day period ended Dec. 14, according to a regulatory disclosure.
This led to Tesla further tightening rules around Musk using his stake in the company to borrow money.
As of March, Musk is SpaceX's largest shareholder with 42% stake and almost 79% of its voting power. As per Reuters, SpaceX had $4.7 billion in cash and securities on hand at the end of last year