The Way Elon Musk Finances His Businesses Is Just As Unconventional As He Is
Leader of Tesla, SpaceX and SolarCity Elon Musk uses everything from personal loans to buying stock to finance his businesses.
He purchased $90M of SolarCity’s solar bonds with SpaceX cash, helping fund one of his businesses while providing the other with, what Musk calls, an “excellent investment,” the Wall Street Journal reports.
In addition to those bond purchases, he’s taken out $475M in personal credit lines to buy shares of SolarCity and Tesla when they needed capital.
The credit lines are secured with around $2.51B of Musk’s shares in SolarCity and Tesla, and while that’s an unconventional, risky and, according to some, unethical move, he says the loans pose no risk to shareholders since they account for less than 5% of his total net worth.
And so far, his unconventional methods have been working—his three companies are worth around $50B combined. [WSJ]