SpaceX is preparing an insider share sale that values the firm at an estimated $210 billion, according to sources cited by Bloomberg. This tender offer places SpaceX among the world's most valuable private companies, closing in on ByteDance, the Beijing-based parent company of TikTok, which is currently valued at $268 billion.
The planned tender offer values each of SpaceX's shares at $112, slightly higher than the $108 to $110 range reported last month. The exact size of the share sale remains undetermined and will likely depend on the level of interest from both existing shareholders and prospective buyers. This valuation marks a notable increase from SpaceX's previous tender offer in December, where shares were priced at $97, giving the company a valuation of $180 billion.
The high valuation comes amidst a string of successes for SpaceX, including multiple crewed launches and securing a significant contract from NASA to develop a "Deorbit Vehicle." This vehicle is intended to safely decommission the International Space Station (ISS) by guiding it out of orbit and ensuring its controlled reentry and destruction in the Earth's atmosphere by 2030. NASA's contract with SpaceX for this project is valued at $843 million.
The robust investor demand driving up SpaceX's valuation reflects the company's strategic importance and technological prowess in the aerospace industry. In January last year, SpaceX raised $750 million in a funding round led by venture capital firm Andreessen Horowitz, which valued the company at $137 billion. The current tender offer not only surpasses this figure but also reaffirms SpaceX's status as a leader in the commercial space sector.
Despite this impressive valuation, Elon Musk has indicated that SpaceX does not currently require additional capital. Last month, Musk stated on social media platform X, "SpaceX has no need for additional capital and will actually be buying back shares." He explained that the company conducts liquidity rounds for employees and investors approximately every six months to manage its financial needs and reward its workforce.
SpaceX's ascent in value is particularly remarkable given the competitive landscape of private companies. While it now trails ByteDance, SpaceX's valuation places it on par with some of the largest publicly traded companies by market capitalization. This achievement underscores the company's strategic initiatives and successful execution of complex space missions.
The company's recent performance and strategic contracts are significant factors in its rising valuation. NASA's decision to award SpaceX the contract for the ISS deorbit mission is a testament to the company's reliability and innovative capabilities. This contract adds to SpaceX's portfolio of government and commercial projects, further solidifying its position in the aerospace industry.
While the terms of the tender offer are not yet finalized, the high investor interest suggests strong confidence in SpaceX's future prospects. The company's ability to attract substantial investment despite its significant valuation reflects its continued potential for growth and innovation in space exploration and commercial spaceflight.
The rising valuation of SpaceX also highlights Elon Musk's increasing influence and success across multiple industries. According to Forbes, Musk's net worth stands at $220.6 billion, making him the world's richest person. His leadership in companies like SpaceX and Tesla has been a driving force behind advancements in technology and renewable energy.
