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SpaceX Reportedly Valued At Around $210 Billion In Planned Secondary Market Share Sale

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4 months ago

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SpaceX Reportedly Valued At Around 0 Billion In Planned Secondary Market Share Sale

Topline

Elon Musk’s SpaceX is readying an insider share sale in a tender offer that values the commercial rocket company at above $200 billion, Bloomberg reported late Wednesday, amid a string of successes in the past year, including multiple crewed launches and receiving the contract to bring down the soon to be decommissioned International Space Station.

Key Facts

Citing sources familiar with the matter, Bloomberg reported the planned tender offer values each of SpaceX’s shares at a “higher-than-expected” $112—slightly higher than the $108 to $110 price reported by the outlet last month.

The transaction would value the company at around $210 billion.

The size of the share sale has reportedly not been finalized yet and will likely be determined based on interest from both existing shareholders and outside buyers.

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News Peg

The purported valuation of $210 billion makes SpaceX the world’s second most valuable startup, as it closes its gap with TikTok’s Beijing-based parent company ByteDance. In December, ByteDance conducted a buyback of shares at a valuation of $268 billion.

Key Background

SpaceX’s most recent tender offer in December had shares priced at $97, valuing the company at $180 billion. In January last year, SpaceX raised $750 million in a funding round led by the venture capital firm Andreessen Horowitz, which valued the company at $137 billion.

Contra

While Musk has not commented on the latest tender offer report, last month he posted on X, “SpaceX has no need for additional capital and will actually be buying back shares.” He then claimed the company does “liquidity rounds” for employees and investors roughly every 6 months.

Forbes Valuation

According to our estimates, Musk’s net worth stands at $220.6 billion, making him the world’s richest person.

Tangent

On Wednesday, NASA announced it has awarded SpaceX $843 million to build a “Deorbit Vehicle” to help bring down the International Space Station in 2030 after it is decommissioned. The vehicle will be designed to safely push the space station out of its orbit and drag it back into the Earth’s atmosphere where it is expected to “destructively breakup” up on reentry.

Further Reading

SpaceX Tender Offer Said to Value Company at Record $210 Billion (Bloomberg)

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