On November 19, 2024, SpaceX’s next-generation Starship spacecraft, powered by the powerful Super Heavy rocket, conducted its sixth test at the company’s Boca Chica launch pad in Brownsville, Texas.
Joe Skipper | Reuters
CNBC confirmed on Wednesday that the valuation of Elon Musk’s SpaceX reached $350 billion through a secondary stock sale.
SpaceX and investors agreed to buy shares from insiders in a $1.25 billion tender offer at $185 per share, according to a copy of the offer obtained by CNBC. The round does not include raising new capital as the tender offer represents a secondary sale of existing shares.
Notably, SpaceX will purchase up to $500 million of common stock as part of the offer, a rare share buyback that shows the strength of the private company’s financial position.
The company regularly raises second rounds of funding (about twice a year), giving employees and other shareholders the opportunity to sell stock. The latest valuation surges 67% from SpaceX’s previous high of $210 billion, which the company achieved through a secondary stock sale in June.
SpaceX’s soaring valuation comes as the company further cements its dominance of the aerospace industry and Musk has emerged as an influential figure in the incoming presidential administration.
The aerospace company has a near monopoly on the U.S. satellite launch market, dominated by its workhorse Falcon rocket, and rivals have struggled to field operational rockets to compete.
SpaceX’s Starlink satellite network business is a key economic driver for the company, with about 7,000 satellites launched to date and the service having about 5 million users.
Meanwhile, its massive Starship continues to make progress in flight tests, representing an attempt to build the next generation of reusable rockets unprecedented in scale and power.
SpaceX’s latest valuation puts the company above the market capitalization of the top U.S. defense contractors. Among the S&P 500 U.S. companies, SpaceX would rank among the top 25 by market capitalization, between Johnson & Johnson and Bank of Americaaccording to FactSet.
The company did not immediately respond to CNBC’s request for comment on the sale process. Bloomberg First reported SpaceX pricing of $185 per share.
“Few investors are willing to sell at the new valuation of $350 billion,” Musk wrote in response to a social media post about the SpaceX stock sale.
“SpaceX is reducing the amount of stock it is buying back from employees to allow some new investors to come on board,” Musk said. wrote.
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