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Elon Musk's SpaceX planning to sell insider shares to boost value to $350 billion
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  • Elon Musk's SpaceX planning to sell insider shares to boost value to $350 billion

Elon Musk's SpaceX planning to sell insider shares to boost value to $350 billion

FP Staff • December 3, 2024, 15:05:47 IST
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With an estimated valuation of $255 billion, SpaceX is already the most valuable private startup in the world. The potential sale would boost SpaceX’s valuation over $350 billion, which would place SpaceX among giants in the aerospace and technology sectors

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Elon Musk's SpaceX planning to sell insider shares to boost value to $350 billion
The potential valuation of $350 billion would put SpaceX on par with some of the largest publicly traded companies globally. Image Credit: Reuters

Elon Musk’s SpaceX is reportedly in talks to sell insider shares, a move that could push the company’s valuation to an astonishing $350 billion. If successful, this would mark a significant jump from its previous estimated value of $255 billion and its earlier valuation of $210 billion in a tender offer this year. The potential boost would solidify SpaceX’s position as the world’s most valuable private startup, further cementing its dominance in the aerospace and satellite industries.

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The proposed transaction, known as a secondary or tender offering, would allow employees and early shareholders to sell their stakes, providing a rare opportunity for liquidity in the privately held company.

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Discussions are still ongoing, and the final valuation will depend on interest from potential buyers and sellers. While insiders have remained tight-lipped due to the confidential nature of the talks, the anticipated valuation leap reflects the remarkable momentum SpaceX has achieved in recent months.

SpaceX banking on Musk’s success

SpaceX’s soaring valuation mirrors the broader success of Elon Musk’s ventures. The billionaire’s wealth has surged to around $353 billion, buoyed by Tesla’s impressive 42 per cent stock rally since early November. With such substantial gains, Musk’s influence spans across industries, from electric vehicles to space exploration.  

The potential valuation of $350 billion would put SpaceX on par with some of the largest publicly traded companies globally, underscoring its critical role in the private sector and its ambitious trajectory.

Liquidity opportunity for insiders

The tender offer provides a strategic avenue for SpaceX to retain its private status while giving employees and early backers a chance to cash in on their investments.

These transactions are a common practice among high-growth startups, offering flexibility without the need for a public listing. For SpaceX, this approach aligns with its long-term goals, ensuring stability while continuing to attract top talent and maintain investor confidence.

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Positioning SpaceX for the future

A valuation of $350 billion would place SpaceX among giants in the aerospace and technology sectors. It signals confidence in the company’s innovative satellite and space exploration projects, including the ambitious Starship program and the growing Starlink network.  

As SpaceX continues to expand its footprint in global markets, this valuation milestone represents not just a financial achievement but also a clear indication of the company’s potential to reshape the future of space technology.

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