SpaceX has secured a valuation of $350 billion through a secondary share sale. The deal, finalized at $185 per share, marks a sharp increase from the $112 valuation just a few months prior.
This transaction cements SpaceX’s position as the world’s most valuable private company, with a market capitalization rivaling some of the largest publicly traded companies. According to Forbes, the next highest valued private company is food and drink conglomerate Cargill, valued at $160 billion.
As we reported last month, SpaceX was considering a share sale, and after discussions were completed, the insider transaction involves the sale of up to $1.25 billion in shares, with SpaceX itself purchasing $500 million worth of stock. This structure, known as a tender offer, allows employees and early shareholders to sell shares, providing liquidity while enabling the company to bring in new investors. (via Bloomberg)
Musk confirmed the share sale on X, saying existing investors didn’t want to sell any shares, even with the new and sky-high valuation.
“What’s really crazy about this is that almost no investors wanted to sell shares even at a $350B valuation! SpaceX reduced the amount of shares it bought back from employees to allow some new investors in.”
The private share sale brings about the natural question of when the company might go public. While mentions of an initial public offering (IPO) have circulated for years, Musk has previously said it would not happen until the company is cash-flow stable. He has also said it would not happen until at least 2025, which happens to be just a few weeks away.
