SpaceX likely to sell Elon Musk shares to fund Twitter show

The Post has learned that SpaceX plans to sell existing shares starting Tuesday to a select group of buyers and there is speculation that Elon Musk is a seller.

Musk was trying to raise more money for him $44 billion Twitter offer Sources close to the situation said he is not only going through a tough time but is finding it costly.

The billionaire could sell shares of SpaceX instead to help fund the acquisition. As of August, the Tesla mogul owned 44 percent of SpaceX shares, according to federal filings.

The tender offer is for existing shares, not new shares, a private placement source close to the situation told The Post.

The Musk-controlled company last raised $337 million in December at a $100 billion valuation.

This time, the private placement source said, SpaceX will seek $70 per share β€” a 25 percent increase from its last round, after which the shares were split 10 to 1 β€” equivalent to a valuation of about $125 billion.

Meanwhile, Musk has been scrambling to raise more money for his Twitter show.

He’s talking to private equity firms, including Apollo Global Management And hedge funds, about raising $2 billion to $4 billion in preferred funding to replace it Margin Loans vs. TeslaA banking source said the bank would replace some of the Morgan Stanley microfinance it had already arranged.

SpaceX has launched 19 rockets this year, placing 53 satellites for its Starlink network, which provides Internet access to underserved regions of the world, including war-torn Ukraine.
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Tesla shares have taken a hit since Musk announced the purchase of Twitter last month. The stock closed at $724.37 on Monday – after hovering near $1,000 when the deal was announced on April 25.

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The banking source said Morgan Stanley has committed to lending Twitter $3 billion in small debt to fund the acquisition that could cost Twitter a very high interest rate of 12 percent.

Friday’s Musk Tweet Questioning Twitter’s reporting of its user base Lending sources said that increasing debt financing would not make debt collection easier.

β€œIt will be much more difficult to sell debt now that he has questioned his Twitter user base,” the banker said. “It undermines their finances.”

On Monday afternoon, Musk said a viable deal to buy Twitter for less than $54.20, which he agreed to pay on April 25, would not be forthcoming.

SpaceX is said to have had several successful launches in recent months.

This year, it launched 19 rockets – including on a Friday – and placed 53 satellites of its Starlink network that provides Internet access to underprivileged regions of the world, including war-torn Ukraine.

Last year, there were only 31 launches.

SpaceX says it will beat NASA in getting to Mars this decade.

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