SpaceX, the aerospace manufacturer and space transportation company founded by Elon Musk, has seen its valuation skyrocket to nearly $150 billion following a share sale by existing investors. The company has reached an agreement with new and existing investors to sell up to $750 million in stock from insiders at a share price of $81, according to a letter sent by CFO Bret Johnsen.
This recent share sale does not involve the raising of new capital but represents a secondary sale of existing shares. Musk had previously stated in April that the company does not anticipate needing to raise funding for its programs, such as Starship and Starlink. SpaceX typically conducts these secondary rounds twice a year, allowing employees and other shareholders the opportunity to sell their stock.
The new share price of $81 represents a 5% increase from the previous secondary sale at $77, valuing SpaceX at around $140 billion. However, the company has not provided any official comments regarding the purchase offer.
SpaceX continues to solidify its status as one of the most valuable private companies globally, earning the distinction of a “centicorn” or “hectocorn” – a unicorn valued at $1 billion, but 100 times over. It has gained a near-monopoly in the U.S. satellite launch market through its Falcon rockets, while competitors struggle to develop operational rockets.
The company recently achieved a significant milestone, landing an orbital rocket booster for the 200th time, and has completed 47 launches so far this year, averaging one launch every four days. SpaceX has also successfully deployed nearly 5,000 Starlink internet satellites, with the service amassing over 1.5 million subscribers within three years of its launch. The company anticipates Starlink to become profitable in 2023, following a cash flow positive quarter in 2021. It also secured a Pentagon contract to provide Starlink service in Ukraine.
Despite its successes, SpaceX continues to heavily invest in the development of its next-generation Starship rocket, with an estimated expenditure of $2 billion in 2022 alone. The first Starship flight faced both significant achievements and multiple challenges, prompting the company to prepare for a second launch pending approval from the Federal Aviation Administration (FAA). However, SpaceX and the FAA are embroiled in an environmental lawsuit over regulatory concerns surrounding the Starship program.
Meanwhile, speculation abounds regarding the potential initial public offering (IPO) of SpaceX’s Starlink business. President Gwynne Shotwell has provided no updates on the matter this year, while Musk reportedly informed employees last year that a Starlink IPO is unlikely until 2025 or later.
With its impressive achievements and ongoing investments, SpaceX’s valuation surge showcases its position as a dominant player in the space industry. The company’s ambitious projects and technological innovations continue to inspire awe and garner attention on a global scale.