Elon Musk's rocket manufacturing company SpaceX is reportedly in talks to sell insider shares of the company that could boost its valuation to about $350 billion.
What Happened: The talks are ongoing and details of the transaction could differ depending upon interest from insider sellers and buyers, Bloomberg reported, citing people familiar with the matter.
A report in November suggested that SpaceX was aiming for a $250 billion valuation, but it has since been raised to $350 billion, according to media reports.
SpaceX was valued at about $210 billion in a tender offer earlier this year. A valuation of about $350 billion will make the company the most valuable private startup in the world.
SpaceX is privately held, unlike Musk's Tesla which is a publicly listed company. The secondary offering gives shareholders the choice of selling shares they hold in the company and generating liquidity.
Why It Matters: Musk has previously dismissed the possibility of a SpaceX initial public offering (IPO), citing the intense pressure for short-term results faced by publicly listed companies.
Company COO Gwynne Shotwell said at a conference hosted by Baron Capital last month that the company will make "some money" on Starlink this year. Starlink is the satellite internet segment of SpaceX. It achieved a breakeven cash flow in November 2023.
"We are going to make some money on Starlink this year. But ultimately I think Starship (the company's new rocket under development) will be the thing that takes us over the top as one of the most valuable companies," she said. However, Shotwell refused to divulge more of the company's financials.
Investors can leverage Destiny Tech100 Inc. (NYSE:DXYZ) and Cathie Wood's Ark Venture Fund (NASDAQ:ARKVX) to participate in SpaceX's growth.
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Photo courtesy: SpaceX
