Space Exploration Technologies Corp. (SpaceX), the most valuable private company in the US, is reported to be raising $750 million in its latest funding round putting the value at $237 Billion according to a CNBC report. The company was offering the shares for $77 apiece in December according to people who asked not to be identified because the information wasn’t public. The $137 billion figure compares with a $127 billion valuation in July, according to data provider PitchBook. Andreessen Horowitz will likely lead the new funding round in the Elon Musk-led company.
SpaceX or Horowitz did not immediately respond to CNBC’s request for comment. Bloomberg reported back in December that SpaceX was offering to sell insider shares at a price that would raise the closely held company’s valuation to about $140 billion.
The report comes at a time where Elon Musk’s wealth has been cut by over $200 billion since it’s peek with the fallout from his buy of Twitter and resultant collapse of Tesla by 65% in 2022. Musk’s stake in SpaceX was valued at around $47 billion, according to the Bloomberg Billionaires Index. Elon Musk has fallen to be the world’s second richest man with $137 Billion, down -$133 billion on the year.
SpaceX dominates the market for commercial space launch and is based in Hawthorne, California. Customers include private sector clients, the National Aeronautics and Space Administration (NASA) and other government agencies. SpaceX ferries astronauts back and forth to the International Space Station for NASA. The space company has also flown its first private space tourism mission for civilians to orbit the earth for several days.
The company is closely held and is led by Elon Musk. It is also building a constellation of thousands of Starlink satellites to beam broadband internet coverage to the Earth below. Musk has previously said Starlink could be spun off in a public listing once cash flow is more predictable. In June 2021, Musk said the company would need to invest $20 billion to $30 billion to maintain Starlink’s competitive position.
Source: CNBC. Bloomberg
From The TradersCommunity News Desk