BEIJING( 14 (Xinhua) — Tesla could sell more shares to help it expand globally as its share price soars, but its billionaire founder, Elon Musk, is taking another approach to meet his personal cash needs: borrowing money from banks,media reported. A regulatory filing thursday by Tesla shows That Musk is currently saddled with $548 million in personal loans, an increase of about 8 percent from the last disclosure in May last year.
The loans came from Morgan Stanley, Goldman Sachs and Bank of America.
In the document, Tesla said it would sell about $2 billion worth of raisins to raise money for capital expenditures. Musk has pledged to personally subscribe for $10m of stock in the sale, and Larry Ellison, Tesla’s director and Oracle CEO, has pledged $1m.
According to the Bloomberg Billionaires Index, the recent surge in Tesla’s stock price has boosted Musk’s value by about 50 percent this year to $40.5 billion. However, he said in december that he owned shares in Tesla and SpaceX, as well as some liabilities, but not much cash, when he appeared in court in a defamation case against him by British divers.
Musk owns a fifth of Tesla’s out-of-stock shares, which makes up most of his wealth, plus a stake in SpaceX. He hasn’t sold any stakes in Tesla for years. Instead, he used the shares as collateral to borrow money from banks.