Elon Musk Withdrew $1 Billion Loan From SpaceX During Time Of Buying Twitter

The richest man in the world, Elon Musk is back in the limelight for his acquisition of Twitter, now known as X. As per Wall Street Journal, the billionaire withdrew a loan amounting to $1 billion from his two-decade-old spacecraft and satellite launcher, SpaceX when he was acquiring Twitter. The reason is yet to be known.

However, the report cited documents that revealed that SpaceX approved the $1 billion loan, backed by some of Musk's SpaceX stock, in October and the Tesla CEO drew all of it down the same month. Musk completed the acquisition of Twitter in October last year.

Furthermore, the report highlighted that Musk had made arrangements with banks to borrow against his shares in his companies which included his electric vehicles giant Tesla as well, while privately held SpaceX has served as his lender. It added that this led to further complications for Musk in paying for Twitter.

As of March 2023, Musk's shareholding in SpaceX is around 42% and he has almost 79% of its voting rights. By the end of 2022, SpaceX reportedly had $4.7 billion in cash and securities.

Musk acquired Twitter for approximately $44 billion. Twitter, now X, has become a privately held company under Musk's ownership.

It needs to be noted that in 2022, Musk sold a huge portion of his shareholding which were both before and after his Twitter deal, bringing his total sales to around $40 billion, which as per WSJ, frustrated investors in the EV maker.

Tesla has to tighten norms around Musk using his stake in the company to borrow money in April 2023, as per WSJ.

Currently, Elon Musk tops the rich list of the Bloomberg Billionaire Index with a net worth of $234 billion as of September 6, 2023. His wealth has risen by a whopping $97.2 billion year-to-date.

Tesla share listed on Nasdaq, has skyrocketed by a breathtaking 137.3% so far in 2023. However, in a year, Tesla shares have dipped by over 6.5%.

Reuters reported that neither SpaceX nor Tesla commented on the latest development.

Tesla is expected to announce its third quarterly results in late October. Richard Saintvilus, author of an article on Nasdaq said, Wall Street expects the company to earn 80 cents per share on revenue of $24.67 billion. This compares to the year-ago quarter when earnings came to $1.05 per share on revenue of $21.96 billion. For the full year, earnings are expected to decline 15.5% year over year to $3.44 per share, while full-year revenue of $99.78 billion would rise 22.5% year over year.

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The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, nor the brokerage firm nor GreName: Pooja Jaiswar