Elon Musk, Paypal Co-founder & Tesla Head is Broke

During his divorce proceedings from novelist Justine Musk in May, Elon Musk made the very surprising claim that he is broke, a revelation which surprised many in the industrial world, since he is a co-founder of Paltalk, Head of SpaceX and the founder of ‘Tesla Motors’ the electric car company which is planning a $178 million IPO.

“About four months ago, I ran out of cash,” Muck stated during the hearings, and he reportedly has been living on $200,000 a month, which was partially made up from loans from friends. Because of this, Musk stated that he is not able to come up with a regular flow of cash.

‘Andrew Ross Sorkin’ spoke of the financial situation in the ‘New York Times’ and stated, “Mr. Musk’s personal fortune is not just a matter of pride. A business is hanging in the balance. Tesla’s loan from the Energy Department requires Mr. Musk to hold at least 65 percent of Tesla. If he cashed out early, that loan would technically go into default.”

What Sorkin is speaking of is the fact that after years of courting by Wall Street, Muck was given a $465 million dollar low interest loan from The Energy Department. Sorkin went on to say that the whispering among Musk’s detractors started almost immediately.

Musk was one of the handful of people who started the Paypal company. Not too long ago, he had over 200 million dollars in cash. He went on to take some of the money he made from that venture to start SpaceX, a commercial space company, and a solar panel financing business called SolarCity. He is also the founder of Tesla Motors, an electric car company.

And now, in the middle of a divorce, he claims to be broke. He stated that his last penny was invested in his business ventures and that he has been living off the loans his friends have given him. According to court papers, he is living off the 200,000 dollars and still flies in his private jet. Musk’s wife asked for a divorce and the house, alimony, child support, and six million cash after he ran off with Talulah Riley. She also wants a cut of Tesla Motors and a piece of the SpaceX stock.

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