Musk Looks to Scrap Tesla Margin Loan With New Twitter Funding

Elon Musk is in talks to raise enough equity and preferred financing for his proposed buyout of Twitter Inc. to negate the need for a $6.25 billion margin loan linked to his Tesla Inc. shares, Bloomberg Law reported Thursday.

The billionaire’s advisers, led by Morgan Stanley, have begun soliciting interest from potential investors for as much as $6 billion in preferred equity financing, the report said, citing people with knowledge of the matter.

Twitter declined to comment on the report, while Musk could not be reached for comment.

Musk originally took out a $12.5 billion margin loan secured against his Tesla stock to help fund his purchase of Twitter. But he reduced that loan to $6.25 billion earlier this month after bringing in co-investors.

© 2022 Thomson/Reuters. All rights reserved.

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