Elon Musk's SpaceX Plans Share Sale At Eye-Watering $400B Valuation: Report

Elon Musk-led SpaceX is reportedly looking to raise funds by selling shares at a valuation of $400 billion.

Bloomberg News reported, citing people familiar with the matter, that the lofty valuation is derived from several factors, including the rise of its fast-growing Starlink satellite internet unit, which makes up for more than half of SpaceX’s annual revenue, as well as new milestones for its Starship program.

If SpaceX manages to sell shares at the reported valuation, it would surpass its own record as the most valued privately held U.S. company, competing with the likes of TikTok owner ByteDance and OpenAI.

The report added that the aerospace firm’s strategy involves launching a primary fundraising round, during which investors will be able to purchase a limited number of new shares. Concurrently, a secondary offering will take place, in which SpaceX will sell shares held by employees and early investors at a price determined by the price set in the primary round.

The details of the offerings could change depending on interest from insider sellers and buyers, the report noted, as has happened during previous company buybacks. The Texas-based firm reportedly raised $850 million in one of its 2021 fundraising rounds.

The talks of fundraising come at a time when SpaceX’s stature as one of the top launch providers has been dented by a string of failures at its Starship program, including an incident in June when the huge launch vehicle exploded during a test. Retail sentiment on Stocktwits about SpaceX’s rival, Rocket Lab, was in the ‘bullish’ territory.

The aerospace firm has also garnered attention due to a feud between Musk and U.S. President Donald Trump about the Republican’s signature tax bill. Musk had said he would launch a new political party to break the two-party dominance in U.S. politics, drawing immediate criticism from Trump.  

Also See: AES Stock Sparkles In After-Hours Trading On Buzz Of Possible Sale

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on