According to sources, SpaceX will likely sell insider shares in a potential tender offer that will value the rocket company close to $350 billion. This move could make SpaceX the most valuable private startup globally and ahead of top defence and aerospace firms like Lockheed Martin and GE Aerospace. As Bloomberg reported last month, SpaceX’s valuation is much higher than previous estimates of $255 billion.
So, selling stocks internally at a $350 billion valuation means SpaceX just became $100 billion or 40% more valuable in a very short span. The Elon Musk-owned company was valued at $210 billion in an earlier tender this year.
Furthermore, SpaceX shares were sold at a $175 billion valuation in December 2023, which is half that of the latest tender. Note that the rocket and satellite firm has executed multiple tender offers at regular intervals.
Liquidity Boost Amid High Confidence In Company Projects
SpaceX doesn’t have shares listed on stock exchanges. Hence, the secondary offering will enable company workers and several early stakeholders to sell shares while SpaceX remains a private firm. In turn, the company will be able to boost liquidity tremendously without a typical fundraising round.
However, the sources highlighted that the details of the transaction and, subsequently, the company’s valuation could fluctuate depending on interest from buyers and sellers amid ongoing insider trade negotiations. The potential tender also indicates high confidence in SpaceX’s revolutionary program, including the Starship spacecraft, Starlink satellite network, and as a leading global launch provider.
It is also important to note that the firm also works closely with NASA and the US Armed Forces. SpaceX has yet to respond to comment requests from several news outlets. The development comes amid Musk’s strengthening ties with President-elect Donald Trump. He is also slated to work with the upcoming Trump administration as the co-leader of the Department of Government Efficiency.
Higher Valuation To Boost Musk’s Wealth Significantly
Musk is the wealthiest person on the planet, with an estimated net worth of $336 billion on December 3, as per Forbes’ Real-time Billionaires List. He is estimated to hold over 40% stake in SpaceX, and the potential jump in company valuation is a boon for his personal net worth, which could increase by almost $40 billion if the tender goes through.
Overall, it would be a solid comeback after Musk stands to theoretically lose $100 billion in wealth after a Delaware Chancery Court Judge rejected his 2018 pay package as Tesla CEO for the second time, despite shareholders voting in favour of the deal.
Musk currently controls almost 20% of Tesla stock, which has soared over 40% since early November to trade at over $353 per share at present.
