SpaceX, the aerospace company founded by Elon Musk, has reached a valuation of almost $150 billion following a share sale by existing investors, according to reports from CNBC. The company has an agreement with new and current investors to sell up to $750 million in stock from insiders at a price of $81 per share. This represents a secondary sale of existing shares and does not involve raising new capital. SpaceX typically conducts these secondary rounds approximately twice a year, allowing employees and shareholders to sell their stock.
5% Increase in Share Price
The latest share price of $81 reflects a 5% increase from the previous secondary sale at $77 per share, valuing the company at around $140 billion. The company has not yet responded to CNBC’s request for comment regarding the purchase offer. Bloomberg and The Wall Street Journal had previously reported on the company’s plan to sell shares.
SpaceX maintains its position as one of the most valuable private companies globally, often referred to as a “centicorn” or “hectocorn” due to its valuation exceeding $1 billion by 100 times.
U.S. Satellite Market Dominance
The company has solidified its dominance in the U.S. satellite launch market, primarily due to its reliable Falcon rockets and the challenges faced by competitors in fielding operational rockets. SpaceX recently achieved a milestone by successfully landing an orbital rocket booster for the 200th time and has conducted 47 launches thus far in 2023, averaging a launch every four days.
With nearly 5,000 Starlink internet satellites launched to date, SpaceX’s Starlink service has gained over 1.5 million subscribers within three years of its debut. The company expects Starlink to become profitable in 2023 after achieving a cash flow positive quarter last year. Furthermore, SpaceX secured a contract from the Pentagon to provide Starlink service in Ukraine, although the details of the deal remain undisclosed.
Tackling the Challenges
While SpaceX continues to invest heavily in the development of its next-generation Starship rocket, costing approximately $2 billion this year, the company faces challenges. The first Starship flight encountered several issues despite achieving significant milestones. SpaceX is preparing for a second launch, pending approval from the Federal Aviation Administration (FAA). Additionally, the FAA is currently involved in an environmental lawsuit regarding its regulation of SpaceX’s Starship.
Regarding the potential initial public offering (IPO) of its Starlink business, SpaceX has remained silent. Earlier this year, President Gwynne Shotwell stated that there were no updates on the matter. CNBC previously reported that Musk informed employees that Starlink is unlikely to go public before 2025 or even later.