SpaceX is reportedly in discussions to sell insider shares, potentially valuing the company at over $175 billion. This would be an increase from the previous share sale which valued the aerospace company at $150 billion.
According a report from Bloomberg, citing sources familiar with the matter, the tender offer is expected to range between $500 million and $750 million, with individual share prices hovering around $95. The flexibility of the tender offer’s terms and size depends on the interest from both insider sellers and potential buyers within the company. This potential valuation represents a significant jump compared to SpaceX’s $150 billion valuation secured less than six months ago.
If this valuation materializes, SpaceX would join the ranks of the world’s top 75 companies by market capitalization, placing it alongside industry household names like T-Mobile and Nike.
The sky high valuation does not come without merit. SpaceX has established itself as a dominant force in the commercial space launch services market, propelled by its highly successful Falcon rockets. The company conducts missions for private-sector clients, government agencies, including NASA, and other entities.
SpaceX’s influence extends beyond traditional space launch services, as it operates Starlink, an internet service driven by a growing constellation of satellites in low-Earth orbit. Recent reports suggest that SpaceX’s estimated revenue for the current year is approximately $9 billion, with forecasts anticipating a substantial rise to around $15 billion by 2024.
While there have been reports regarding a potential initial public offering (IPO) for Starlink as early as late 2024, CEO Elon Musk has denied them, simply replying “False” on X.