Financial Services

Elon Musk's SpaceX hits $100 billion valuation after secondary share sale


SpaceX’s Starship rocket production facility in Boca Chica, Texas, as CEO Elon Musk (third from the right) and President Gwynne Shotwell (third from the left) tour.

Steve Jurvetson on flickr

The valuation of Elon Musk’s SpaceX crossed $100 billion following a share sale by existing investors announced this week, CNBC has learned.

SpaceX has an agreement with new and existing investors to sell up to $755 million in stock from insiders at $560 a share, according to multiple people familiar with the deal — increasing the company’s valuation to $100.3 billion. The company did not raise new capital at this time, sources said, with the purchase offer representing a secondary sale of existing shares.

The new share price is an increase of 33% from SpaceX’s last valuation of $74 billion at $419.99 a share in February, when the company raised nearly $1.2 billion. The company had a similar secondary transaction in February, with a deal for insiders to sell up to $750 million at the time.

SpaceX’s new valuation makes it one of the rare private “centicorn” or “hectocorn” companies in the world — a $1 billion unicorn 100 times over. Musk’s SpaceX is now the second-most valuable private company in the world, according to CB Insights, behind only China’s Bytedance and jumping past fintech firm Stripe.

SpaceX CEO Elon Musk poses with the crew before launch on September 15, 2021.

John Kraus / Inspiration4

The people spoke to CNBC on condition of anonymity, because SpaceX is not a publicly traded company and the financing is private.

SpaceX did not respond to CNBC’s request for comment.

The company’s valuation has soared in the last few years as SpaceX has raised billions to fund work on two capital-intensive projects: Starship and Starlink.

Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV. 
Sign up to start a free trial today.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.