Musk uses SpaceX like a piggy bank... borrowed and repaid hundreds of billions of won

"Musk uses SpaceX like a piggy bank... borrowed and repaid hundreds of billions of won"

NYT reports based on internal documents... also provided funds to other companies he owns, such as SolarCity and xAI

It has been confirmed that Elon Musk personally borrowed hundreds of billions of won from SpaceX, the aerospace company where he serves as CEO, and also provided funds to his other companies.

The New York Times (NYT) reported on the 24th (local time) that, based on an analysis of internal corporate data and testimonies from officials, Musk borrowed $500 million (approximately 738.8 billion won) from SpaceX on a total of three occasions between 2018 and 2020.

Interest rates were sometimes less than 1% and at other times set at about 3%. Considering that the preferential interest rate at commercial banks at the time was around 5%, he borrowed money under much more favorable conditions. The collateral was SpaceX stock, and the repayment period was 10 years.

According to internal documents, this loan was specifically executed for the CEO, and the approving authority was not disclosed. It was also not specified how Musk used this money.

Musk reportedly repaid the principal and $14 million in interest by the end of 2021.

Musk not only took out personal loans but also secured funds from SpaceX when other companies he leads ran out of cash.

Electric vehicle maker Tesla, solar energy company SolarCity where he is a major shareholder, and AI venture xAI all borrowed money from SpaceX.

When Tesla faced risk during the 2008 financial crisis, SpaceX provided $20 million. In 2015, SpaceX invested $255 million by purchasing SolarCity corporate bonds, which were considered to have a high risk of default. Most recently, SpaceX acquired xAI.

Regarding this behavior, the NYT pointed out, "When Musk needed $100 million, he turned to SpaceX instead of calling a bank," adding, "He has been using SpaceX like a piggy bank for the past 20 years."

Musk's support for one of his companies through another has been confirmed multiple times in the past.

Bloomberg recently reported that SpaceX boosted Tesla's sales performance by purchasing 1,279 units of the high-priced Cybertruck pickup model.

This was possible because SpaceX was a private company, but it is expected to become difficult in the future. SpaceX is preparing for a listing in June.