On May 22, Bloomberg reported that Elon Musk has reorganized SpaceX, xAI and X into a closely related business group, a move that has already brought considerable financial benefits: saving nearly $1 billion in interest expenses annually. On Wednesday, just before SpaceX launched its historic IPO, the company filed regulatory documents showing that it had obtained a $20 billion bridge loan from banks, which will be used to repay $17.5 billion of high-interest junk debt assumed by Musk's social media and AI companies.
Musk
In other words, Musk uses low-interest financing from high-quality assets (SpaceX) to refinance or repay high-interest assets (junk bonds of X and xAI).
Documents show that as of March 31 this year, the effective interest rate on this bridge loan was 4.58%, which is much lower than the interest rate on junk bonds and leveraged loans undertaken by X and xAI, which have interest rates as high as 12.5%. According to Bloomberg calculations, taken together, this operation roughly halved the total annual interest costs borne by Musk's company, to about $900 million.
Musk often uses the debt market to acquire or expand his own companies. He has obtained billions of dollars in bank credit and designed complex financing structures, but the process has not been smooth sailing. His 2022 acquisition of Twitter (later renamed However, the banks eventually succeeded in selling the debt last year.
Musk's xAI subsequently acquired X in March 2025 and borrowed an additional $5 billion in June of the same year. When SpaceX acquired xAI in February, Morgan Stanley, which handled debt financing for both companies, told existing lenders that the debt would be repaid in full, but did not specify how.
Ultimately, SpaceX used $20 billion in loans from multiple banks, including Goldman Sachs Group Inc., Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley.