SpaceX, the pioneering aerospace manufacturer and space transportation company founded by Elon Musk, is reportedly gearing up for a monumental insider share sale. According to a Bloomberg report citing sources familiar with the matter, this transaction could catapult the company's valuation to an unprecedented $800 billion.
Record-Breaking Valuation on the Horizon
This potential valuation would see SpaceX shatter the current record held by OpenAI, the creator of ChatGPT. OpenAI achieved a $500 billion valuation in a share sale last October. The proposed SpaceX deal, discussed by its board of directors at the Starbase facility in Texas, would firmly establish it as the world's most valuable privately-held company.
The discussions indicate that the share price under consideration is more than $400 per share. This marks a dramatic increase from the $212 per share price set in July 2024, when the company was valued at $400 billion. While the final details of the tender offer could shift based on interest from buyers and sellers, the $800 billion figure has also been reported by other financial publications like The Wall Street Journal and Financial Times.
Market Impact and Strategic Moves
The news of SpaceX's soaring valuation has already sent ripples through related markets. Shares of EchoStar Corp., a satellite TV and wireless company, surged by as much as 18%. This spike follows a recent agreement where EchoStar agreed to sell spectrum licenses to SpaceX for $2.6 billion, highlighting the strategic synergies and financial confidence in SpaceX's growth trajectory.
SpaceX has not made any official public announcement regarding this insider share-selling deal. The company continues to guard its financial details closely, as is typical for private firms. However, the reported numbers point to an extraordinary leap in investor confidence in Musk's space venture.
Is a SpaceX IPO Coming Soon?
Beyond the immediate share sale, Bloomberg's sources hint at a larger possibility: a SpaceX Initial Public Offering (IPO) as soon as late 2025. If the company proceeds with an IPO at an $800 billion valuation, it would instantly rank among the top 20 largest public companies globally, sitting just below Musk's other giant, Tesla.
The scale of such an offering would be historic. For instance, selling just 5% of the company at the reported valuation would require issuing about $40 billion worth of stock. This would dwarf the current record for the world's largest IPO, held by Saudi Aramco's $29 billion listing in 2019. However, going public would also expose SpaceX to the volatility and scrutiny of public markets, a significant shift from its current private status.
This development underscores the meteoric rise of SpaceX from a ambitious startup to a dominant force in space technology, satellite internet with Starlink, and now, a contender for the title of the most valuable private entity ever.
