Musk leveraged SpaceX loans to support Tesla, SolarCity

ALBAWABA - The New York Times' research has shown how Elon Musk uses SpaceX as a primary source of funding to sustain his personal liquidity as well as other businesses in his portfolio.

The study claims that Musk obtained large loans from SpaceX, starting with $100 million in 2018 and growing to over $500 million over the next years. These loans were secured by his firm shares and had interest rates that were noticeably lower than those of conventional banking arrangements. Later on, the loans were paid off in full.

Because SpaceX is a privately held corporation and is not bound by the same transparency regulations as publicly traded companies, analysts point out that such agreements are generally feasible.

Assistance for related businesses

According to the research, SpaceX has also been crucial in keeping other Musk-led businesses like SolarCity and Tesla stable. Specifically, SpaceX is said to have offered financial support during hard times, including buying some of SolarCity's debt prior to Tesla's takeover.

The trend extends to more recent endeavors like xAI, emphasizing what sources characterize as a networked financial ecosystem across Musk's companies.

Elon Musk has used SpaceX as a kind of piggy bank over the last two decades, turning to the company as a financial tool to get loans and bolster his struggling companies, according to an examination by The New York Times. https://t.co/woMcN3bLM8

— The New York Times (@nytimes) April 24, 2026

Concerns about governance

Investors and legal professionals have expressed concerns over possible conflicts of interest and company governance in light of the findings. Opponents contend that, especially in the lack of complete transparency, utilizing one business to fund others under the same leadership might put stakeholders at risk.

The article has increased scrutiny of how financial choices are handled inside Musk's company network, despite Musk's defense of the concept as a means to fortify his firms and prevent cascade disasters.