Elon Musk’s SpaceX Plans to Seek Funding of $1.7B, Sell $750M Common Stock

Space manufacturer Space Exploration Technologies Corp., also known as SpaceX, is reportedly raising a significant amount of new money that is likely to shoot the valuation of the private business at over $127 billion.

The space enterprise is aiming to raise up to $1.725 billion in new financing at a price of $70 per share, reported CNBC on Friday. In February, SpaceX split its stock price 10-for-1, lowering the common shares to $56 per share – a 25% rise in value.

SpaceX is also selling up to $750 million in common stock to business insiders and existing shareholders in a secondary sale. Given that the space transportation service provider has remained private for more than 20 years, the business performs these secondary sales on a regular basis as a mechanism for long-term owners to sell equity.

The amount of cash inflow was not previously disclosed.
The New York Post was the first to disclose that SpaceX, whose CEO is Elon Musk, was looking for new cash, quoting anonymous sources as saying that the capital increase has so far received “tepid demand.”

SpaceX’s stock has risen dramatically in recent years as the company has raised billions to support two capital-intensive projects: the next-generation Starship rocket and its worldwide satellite broadband network Starlink.

Last week, when SpaceX launched a new Starlink fleet into orbit, the rocket was not the only star. SpaceX’s ground-based surveillance cameras caught a beautiful view of the almost full moon as they prepped for the early-morning Falcon 9 rocket launch from Florida on May 18. From NASA’s Kennedy Space Center in Cape Canaveral, the Falcon 9 launched 53 Starlink satellites into space minutes later.

The next SpaceX rocket launch would be the Transporter 5 rideshare mission, which will transport a variety of small satellites for clients. The launch will take place from Space Launch Complex 40 at the Cape Canaveral Space Force Station no earlier than May 25.

The company’s investment round comes as Elon Musk is accused of sexual harassment by a former SpaceX flight attendant, who reportedly settled for a $250,000 severance package in 2018. The billionaire has dismissed the allegations as “wild accusations.”

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