Elon Musk has dismissed recent reports suggesting that SpaceX, his privately held aerospace company, is considering a tender offer for existing shares that would value the company at approximately $200 billion. Bloomberg had reported late Thursday that discussions were underway for a potential share sale in June, allowing employees and investors to sell SpaceX shares at prices between $108 and $110 each. However, Musk took to his social-media platform X early Friday to refute these claims.
"SpaceX has no need for additional capital and will actually be buying back shares," Musk stated. He emphasized that liquidity rounds for investors and employees are held roughly every six months. A representative for SpaceX could not immediately be reached for further comment.
Despite Musk's denial, the report has sparked considerable interest and speculation within the investment community. Alphabet-owned Google and fund manager Fidelity are among the notable investors in SpaceX, along with billionaire investor Ron Baron. In addition, newer publicly traded funds like Destiny Tech100 Inc. offer individual investors exposure to private tech companies, including SpaceX. Liberty Street Advisors' Private Shares Fund, established in 2014, also provides exposure to the aerospace sector, which constitutes about 12.9% of its portfolio. "The space economy is one of our big verticals," said Christian Munafo, Chief Investment Officer of Liberty Street Advisors.
The potential for SpaceX to go public has been a topic of ongoing debate among investors and industry analysts. Vijay Marolia, Chief Investment Officer at Regal Point Capital, who holds SpaceX shares through Baron's Focused Growth Fund, predicted earlier this year that an initial public offering (IPO) for SpaceX could commence as early as 2025 or 2026.
SpaceX has had a remarkable year in terms of technological milestones and revenue generation. In April, the company achieved a significant milestone with its reusable rocket program by launching 23 Starlink satellites atop a Falcon 9 rocket from Florida. Starlink, which aims to provide low-cost internet in remote areas, has been a critical component of SpaceX's revenue stream, which Bloomberg estimates at $9 billion last year.
One of SpaceX's most notable achievements came in May 2020, with the historic Demo-2 test flight that launched NASA astronauts into space from the Kennedy Space Center atop a Falcon 9 rocket. This marked the first crewed launch from U.S. soil since the final space shuttle mission in 2011. More recently, on March 3, 2024, SpaceX launched its third uncrewed flight test of the massive Starship and Super Heavy rocket, which boasts more than twice the thrust of the Saturn V rockets used during the Apollo missions.
In addition to its technological advancements, SpaceX continues to play a pivotal role in NASA's space missions. On March 3, 2024, the company successfully launched Crew-8, its eighth crew rotation to the International Space Station (ISS). The Crew-9 mission is planned for no earlier than August, according to NASA. Meanwhile, NASA's first crewed launch of Boeing Co.'s Starliner spacecraft has been delayed, highlighting SpaceX's dominance in the field.
Despite these achievements, the rumor of the tender offer has created a buzz. Tender offers allow employees and insiders to sell their shares without the company needing to file for an IPO, thereby strengthening the company's financials before testing public markets. Such strategies are common among high-profile private companies, providing liquidity to shareholders while maintaining private status.
