Elon Musk Borrowed $1 Billion From SpaceX Last Year and It’s Not Clear Why

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Elon Musk Borrowed $1 Billion From SpaceX Last Year and It’s Not Clear Why
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The Tesla founder took out the money in October.

for financial assistance. The spacecraft manufacturer gave him $20 million years ago so that Musk could help the then-struggling Tesla, thenoted. In 2015 and 2016, SpaceX invested $330 million in bonds issued by yet another Musk company, SolarCity. And since 2017, Musk has been allowed to take out increasingly large sums of money from SpaceX, including loans of $100 million and $300 million.

Last year’s loan is perhaps more interesting, however, for a couple of reasons. First, it’s an eye-popping amount of money: SpaceX upped Musk’s borrowing limit to $1 billion last fall, and he cashed in on that change rather quickly. Second, Musk took out the money around the same time he was working to acquire the social-media company then known asInitially, Musk had planned to use Tesla shares as collateral in buying Twitter.

Regardless of what it went toward, the SpaceX loan was a good chunk of that company’s capital. At the end of last year, SpaceX had $4.7 billion in cash and securities on hand, according to documents reviewed by. And the $1 billion given to Musk was 11 percent of the $9 billion in equity that SpaceX has reported selling since 2009, according to regulatory filings cited by the newspaper., the $1 billion loan does feel a bit like a drop in the bucket, though.

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