Elon Musk is ready to bring SpaceX to the next level. Investors from all over the world want a piece. Elon Musk is almost assured to once again become the wealthiest man alive, and may not lose the title for many years to come as cable services, mobile services, and A.I. all come online.
SpaceX is preparing for an internal share sale through a tender offer that is set to push the company’s valuation to over $200 billion, as reported by sources. This valuation is significantly higher than previous estimates, with shares now priced at $112 each, marking a slight increase from last month’s expected range of $108 to $110 per share. The new valuation pegs SpaceX at approximately $210 billion, positioning it as the world’s second most valuable startup, just behind ByteDance, the parent company of TikTok, which was valued at $268 billion following a recent share buyback.
SpaceX will sell insider shares at $112 apiece in a tender offer, a higher-than-expected price that boosts the value of Elon Musk’s space and satellite company closer to $210 billion, sources say https://t.co/s1fzLBzv9h via @technology
— Kimberly Siversen Burke (@Siversen44) June 27, 2024
The specifics of the share sale, including its exact size, are still under consideration, dependent on the level of interest from both current shareholders and potential new investors. This forthcoming financial maneuver reflects SpaceX’s robust performance over the past year, which includes multiple crewed launches and a notable contract from NASA. Under this contract, SpaceX is tasked with developing a “Deorbit Vehicle” to assist in safely decommissioning the International Space Station in 2030. This vehicle is designed to remove the station from orbit and ensure it breaks up upon reentry into Earth’s atmosphere, a project that underscores SpaceX’s pivotal role in ongoing space exploration and infrastructure.
BUSINESS:
SpaceX will sell insider shares at $112 each in a tender offer. pic.twitter.com/hjc0Je7SRw
— Money Guys (@MoneyyGuys) June 27, 2024
SpaceX’s financial journey saw its shares priced at $97 during the last tender offer in December, which valued the company at $180 billion. Moreover, in a funding round led by Andreessen Horowitz in January of the previous year, SpaceX raised $750 million, valuing the company then at $137 billion. Despite these fundraising activities, Elon Musk recently mentioned that SpaceX does not require additional capital. According to Musk, the company periodically conducts “liquidity rounds” every six months primarily to benefit employees and investors, even stating plans for a share buyback.
Elon Musk, whose net worth is estimated at $220.6 billion, making him the world’s richest person, has not provided further comments on the upcoming tender offer. Nonetheless, the expansion and financial strategies at SpaceX continue to draw significant attention not only for their impact on Musk’s wealth but also for their implications for the future of commercial space travel and satellite communications.
BREAKING: SpaceX will sell insider shares at $112 each in a tender offer, valuing Elon Musk’s space and satellite company around $210 billion – Bloomberg pic.twitter.com/MjzsL5sB1Q
— Radar🚨 (@RadarHits) June 27, 2024
Key Points:
i. Elevated Valuation: SpaceX is gearing up for an insider share sale that could value the company at around $210 billion, with individual shares priced at $112, slightly above previous expectations.
ii. Strategic Financial Moves: The specifics of the share sale are still being finalized, with the size of the offering dependent on interest from both existing shareholders and potential investors.
iii. Recent Achievements: Over the past year, SpaceX has secured significant contracts, including one with NASA to build a vehicle designed to deorbit the International Space Station in 2030.
iv. Funding History: The company’s valuation has seen substantial growth from previous funding rounds, including a significant increase from a valuation of $137 billion in a round led by Andreessen Horowitz.
v. Musk’s Financial Strategy: Despite the new valuation, Elon Musk has stated that SpaceX does not need additional capital and is conducting these sales to provide liquidity to employees and investors, hinting at a strategy that includes periodic share buybacks.
Conner T – Reprinted with permission of Whatfinger News
