According to CNBC, the valuation of Elon Musk’s SpaceX has reached over $150 billion following a share sale announced this week by existing investors.
According to a copy of the purchase offer received by CFO Bret Johnsen on Thursday, which CNBC obtained, SpaceX has reached an agreement with new and existing investors to sell up to $750 million in stock from insiders at $81 per share.
At this moment, the company has not announced a new capital raise, with the purchase offer indicating a secondary sale of existing shares. Musk stated in April that the business “does not anticipate the need for additional funding” to support Starship, Starlink, and other ventures. SpaceX typically does secondary rounds twice a year to allow employees and other company shareholders to sell stock.
The new share price reflects a 5% rise above the previous secondary sale price of $77 per share, for a valuation of approximately $140 billion. CNBC reached out to SpaceX for comment on the purchase offer, but the company did not respond.
The company’s intention to sell shares was earlier revealed by Bloomberg and The Wall Street Journal.
SpaceX remains one of the most valuable private corporations in the world, classified as a “centicorn” or “hectocorn” – a $1 billion unicorn multiplied 100 times.
Because of its workhorse Falcon rockets and rivals’ failures to build operational rockets to compete, the business has created a near-monopoly on the US satellite launch market. SpaceX landed an orbital rocket booster for the 200th time last month, and the business has launched 47 times this year, for a scorching average of one launch every four days.
To date, Musk’s business has launched almost 5,000 Starlink broadband satellites.In less than three years after its launch, the service has expanded to more than 1.5 million customers. After achieving a cash flow positive quarter last year, SpaceX predicted that “Starlink will make money” in 2023. It received an undisclosed Pentagon deal last month to supply Starlink service in Ukraine.
SpaceX is still investing extensively in the construction of its next-generation Starship rocket. Musk anticipates that the business will spend approximately $2 billion on the vehicle’s development this year. The first Starship flight took off and surpassed several milestones, but it also encountered numerous challenges. SpaceX is preparing to launch a second rocket in the coming months, but it must first obtain permission from the Federal Aviation Administration. In addition, the FAA is facing an environmental lawsuit over how it governs SpaceX’s Starship.
However, SpaceX has been silent on the possibility of an IPO for its Starlink business. Gwynne Shotwell, President, stated earlier this year that there is “no update.” CNBC reported last year that Musk warned employees that the company is unlikely to take Starlink public until 2025.
- Elon Musk’s SpaceX is selling insider shares at a price to raise the company’s value to about $150 billion, with a $750 million tender offer and each share offered at over $80 each.
- The purchase offer represents a secondary sale of existing shares, and the company did not announce a raise of new capital at this time.
- SpaceX is one of the most valuable private companies in the world, with a near-monopoly on the US satellite launch market, and has established its Starlink internet service with over 1.5 million subscribers.
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.