Elon Musk borrowed $500 million from SpaceX at interest rates as low as 1%, used the rocket company to bail out a struggling solar venture, and most recently had SpaceX swallow his cash-burning AI lab, according to a New York Times investigation published Friday.
The report lands six weeks before SpaceX is expected to hit the road with the largest IPO in history.
What The NYT Documented
Musk pulled three loans totaling $500 million from SpaceX between 2018 and 2020, at rates that ranged from under 1% to nearly 3%, according to the Times.
The prime rate sat closer to 5% for most of that period. Under the 2002 Sarbanes-Oxley Act, public companies cannot lend to senior executives. SpaceX could because it is private.
SpaceX also lent Tesla Inc. (NASDAQ:TSLA) $20 million during the 2008 crisis, per Musk’s own earlier comments. It injected $255 million …
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