(Bloomberg) — SpaceX and its investors have agreed to buy as much as $1.25 billion in insider stock in a deal that values Elon Musk’s rocket and satellite maker at about $350 billion, according to an internal email from Bloomberg.
Most read from Bloomberg
The per-share price of $185 is significantly higher than the $112 set at a previous valuation less than three months ago, according to the memo, which was separately confirmed by people familiar with the matter. SpaceX alone is offering to buy $500 million worth of common stock, the company said.
“What’s really crazy about this is that almost no investors wanted to sell shares, even at a $350 billion valuation!” Musk wrote in a post on X following Bloomberg’s report. “SpaceX reduced the number of shares it bought back from employees to bring in new investors.”
The company, formally known as Space Exploration Technologies Corp., did not respond to a request for comment.
The staggering valuation, which a Bloomberg report last week confirmed, cements SpaceX’s status as the most valuable private startup in the world, with a market capitalization that rivals some of the largest publicly traded companies. It reflects the post-election gains in the billionaire CEO’s business empire.
The insider stock sales instantly boosted Musk’s own net worth by about $50 billion to $439.2 billion, according to the Bloomberg Billionaires Index, making him the first person to reach the $400 billion milestone.
SpaceX has established itself as one of the industry’s leading providers of rocket launches, delivering satellites, cargo and people to space for NASA, the Pentagon and commercial partners, and is building a large network of Starlink satellites that provide internet services.
Musk’s businesses have seen a huge boost since the US election, with investors seeking to capitalize on his deepening ties with newly elected President Donald Trump.
A so-called tender or secondary offering, which allows employees and some early shareholders to sell shares, gives investors in closely held companies like SpaceX a way to generate liquidity.
–With help from Kate Duffy.
(Updates with Elon Musk’s net worth in sixth paragraph.)
Most read from Bloomberg Businessweek
©2024 BloombergLP
