$400 billion valuation for SpaceX? Elon Musk’s firm plans $1 billion share sale; eyes record for private US firms
Elon Musk’s SpaceX is preparing to raise fresh capital and allow employees to cash out in a tender offer that would peg the company’s valuation at around $400 billion, potentially making it the most valuable privately held firm in the United States, according to Bloomberg.The deal reportedly includes a primary fundraising round where a limited number of new shares will be sold to investors, alongside a secondary offering of shares from employees and early backers. The valuation marks a steep climb from its $350 billion mark in December and nearly doubles the $210 billion figure from mid-2023. According to the Financial Times, the transaction was sent to investors on Tuesday and would price shares at $212 apiece.If confirmed, the valuation would place SpaceX ahead of corporate giants like Bank of America and Procter & Gamble, and on par with the 20 most valuable companies in the S&P 500. It would also surpass valuations of OpenAI ($300 billion) and rival ByteDance (over $400 billion), positioning SpaceX among the top-tier of global tech firms.The fundraising comes amid growing success in SpaceX’s Starlink satellite internet division, which now contributes over half of the company’s annual revenue, as per Bloomberg. Meanwhile, its Starship rocket program, critical to Musk’s long-term vision of colonising Mars, continues to undergo development, despite recent setbacks, including an explosion at its Texas test facility in June.The transaction also arrives as Musk remains in the spotlight for political reasons. Once seen as an ally of US President Donald Trump, Musk has recently fallen out with Trump and has now announced a new political party. According to the Financial Times, some analysts had feared political backlash could jeopardise SpaceX’s access to lucrative government contracts. However, investor appetite for the current share offering suggests confidence remains strong.The company last conducted a tender offer in December, buying $500 million in employee shares as part of a broader $1.25 billion deal.Founded in 2002 with $100 million from Musk’s PayPal proceeds, SpaceX has since redefined space travel by pioneering reusable rocket technology. Musk has often stated that the ultimate goal is to make humanity “multiplanetary” by enabling colonisation of Mars.As per Bloomberg, final details of the deal may still shift depending on buyer interest and insider participation, as has been the case in previous rounds.
