SpaceX to Sell Shares, Valued at Over $200 Billion

Elon Musk’s SpaceX is preparing to conduct an insider share sale via a tender offer, which Bloomberg reports will value the commercial rocket company at over $200 billion. This significant financial move comes on the heels of a highly successful year for SpaceX, marked by multiple crewed launches and securing a prestigious contract to decommission the International Space Station (ISS). These milestones have not only bolstered SpaceX’s reputation but have also considerably increased its market value.

According to sources familiar with the matter, the planned tender offer will price SpaceX shares at $112 each, which is higher than the previously reported range of $108 to $110. This revised pricing indicates a strong market confidence in SpaceX’s future prospects and would value the company at approximately $210 billion. However, the final size of the share sale has not yet been determined. It will depend on the level of interest shown by existing shareholders and potential outside buyers, reflecting the dynamic nature of private equity markets.

The valuation of $210 billion places SpaceX as the world’s second most valuable startup, closing the gap with TikTok’s parent company, ByteDance. ByteDance, a Beijing-based company, was valued at $268 billion during a share buyback last December. This comparison highlights SpaceX’s rapid ascent in the global startup ecosystem, driven by its innovative approaches and strategic achievements in the aerospace industry.

In the context of its previous financial activities, SpaceX’s last tender offer in December valued shares at $97 each, setting the company’s valuation at $180 billion at that time. Earlier in January of the previous year, SpaceX successfully raised $750 million in a funding round led by the venture capital firm Andreessen Horowitz, which valued the company at $137 billion. These historical figures underscore the substantial growth in SpaceX’s valuation over a relatively short period.

Elon Musk has remained reticent regarding the latest tender offer reports. However, last month he took to X to assert that SpaceX does not need additional capital and is planning to buy back shares. Musk further explained that SpaceX conducts “liquidity rounds” for its employees and investors approximately every six months. This strategy allows stakeholders to realize the value of their investments without the company needing to seek external funding.

Musk’s personal net worth is estimated at $220.6 billion, maintaining his position as the world’s richest person. His wealth is closely tied to the success of SpaceX and his other ventures, underscoring the significance of these financial maneuvers for his overall financial standing.

Additionally, on Wednesday, NASA announced it had awarded SpaceX $843 million to develop a “Deorbit Vehicle.” This specialized vehicle will play a crucial role in safely decommissioning the ISS in 2030. The vehicle is designed to push the space station out of its orbit and guide it back into the Earth’s atmosphere, where it will destructively break up upon reentry. This contract not only demonstrates NASA’s trust in SpaceX’s capabilities but also solidifies the company’s integral role in the future of space exploration and management.