The valuation of Elon Musk’s satellite communications company, SpaceX, has reportedly reached $350 billion following a secondary share sale.
The transaction involved SpaceX and investors purchasing stock from insiders through a $1.25 billion offer, set at $185 per share, as reported by Bloomberg and confirmed by CNBC. The company itself is said to be undertaking a share buyback of up to $500 million.
This latest valuation marks a 67% increase from SpaceX’s previous high of $210 billion, recorded in June. Moreover, the valuation positions Elon Musk’s satellite business among the top 25 S&P 500 companies by market cap and above McDonald’s and Coca-Cola.
The news was confirmed by Musk himself in a post on the social media platform X (formerly known as Twitter), which he also owns.
“What’s really crazy about this is that almost no investors wanted to sell shares even at a $350B valuation!” Musk wrote. “SpaceX reduced the amount of shares it bought back from employees in order to allow some new investors in.”
SpaceX’s rising valuation underscores its dominance in the space sector, coinciding with Elon Musk’s significant influence in the upcoming presidential administration. The company holds a substantial position in the US satellite launch market, primarily driven by its Falcon rockets, as competitors face challenges in launching operational alternatives.
The Starlink satellite internet business remains a crucial economic contributor, with around 7,000 satellites launched and a subscriber base of about five million. In October 2024, SpaceX secured contracts worth more than $700 million from the US Space Force.
