SpaceX and its investors agreed to buy up to $1.25 billion in insider shares in a transaction that values Elon Musk’s rocket and satellite maker at $350 billion, according to an internal email seen by Bloomberg.
The share price of US$185 is substantially higher than the US$112 established in a previous valuation less than three months agoaccording to the memo, which was confirmed separately by people familiar with the matter. SpaceX alone is offering to buy up to $500 million in common stock, according to the memo.
“The really crazy thing about this is that almost no investors wanted to sell shares, even with a valuation of 350,000 million”Musk wrote in a post on X after the Bloomberg report. “SpaceX reduced the amount of stock it bought back from employees to allow in new investors.”
The company, formally known as Space Exploration Technologies, did not immediately respond to a request for comment.
The staggering valuation, which a Bloomberg report confirmed last week, cements SpaceX’s status as the world’s most valuable private startup. with a market capitalization that rivals some of the largest public companies. It reflects post-election gains across the billionaire CEO’s business empire.
SpaceX has established itself as one of the industry’s leading rocket launch providers, launching satellites, cargo and people into space for NASA, the Pentagon and commercial partners, and is building a large network of Starlink satellites that provide Internet service.
Musk’s businesses have seen a huge boost since the US election, as investors look to cash in on his increasingly close ties to President-elect Donald Trump. Musk’s own wealth has soared to $384 billion, according to the Bloomberg Billionaires Index.
A so-called secondary tender or offering, through which employees and some early shareholders can sell shares, offers investors in closely held companies like SpaceX a way to generate liquidity.
