A consortium of banks led by Morgan Stanley is poised to increase the sale of loans associated with Elon Musk's social media platform X due to robust investor demand, as reported by Bloomberg News on Tuesday.
Originally planning to sell approximately $ X million, the banks now intend to offload up to $5.5 billion of the debt on their books, according to sources cited in the Bloomberg report.
In a November report, Reuters highlighted that the banks were influenced by Elon Musk's involvement and his ties to President Trump, which led them to consider the social media platform's enhanced prospects, facilitating the sale of the debt without incurring substantial losses.
Morgan Stanley, along with Bank of America and Barclays, had provided funding to Musk in 2022 for his $44 billion acquisition of X (previously Twitter). While banks typically sell such loans to investors shortly after a transaction, they have encountered challenges in disposing of the debt related to X.
At the time of reporting, Morgan Stanley had not responded to Reuters' request for comment.