Elon Musk will put up $6 billion to drop Tesla loans from his Twitter deal

Illustration by Kristen Radtke / The Verge; Getty Images

After a rough month for the company, Musk will no longer be able to fund his Twitter deal by borrowing against his stake in the company.

In a filing with the Securities and Exchange Commission, Musk said that a series of margin loans against the stock of the company had expired. As part of the announcement, Musk committed to provide an additional $6.25 billion in equity financing, bringing his total commitment to $33.5 billion.

Musk's initial plan involved a combination of personal equity and loans. Musk cut that number in half with an earlier round of equity financing, and has now restructured the deal to remove them entirely.

The move came in response to growing pressure on the loans. The car-maker's share price has plummeted since Musk announced his plan to take the company private.

A number of equity partners have emerged since Musk first announced his bid, but it is not clear where the additional $6.25 billion will come from. In May, Musk announced an additional $7 billion in private equity funding.

Despite having legally committed to taking ownership of Twitter, Musk has been quiet about his immediate plans. He stated on May 13th that the deal was on hold pending further investigation of automated accounts on the platform. He called on the SEC to investigate the platform's claims about bot accounts.