Elon Musk's SpaceX Said to Become Most Valuable US Startup

Billionaire Elon Musk's SpaceX is poised to become the most valuable US startup as its valuation rose to over $125 billion (roughly Rs. 9,68,906 crore) in an ongoing share sale in the secondary market, sources familiar with the matter told Reuters.

The shares, which are marketed at about $72 (roughly Rs. 5,580 crore), jumped in valuation from last October, when SpaceX's shares were sold at $56 (roughly Rs. 4,340) apiece after a 10-1 split and valued the rocket company at $100 billion (roughly Rs. 7,75,125 crore).

No new shares have been issued in the secondary offering, but the company indicated to investors that they may do so later this year, said one of the sources, who asked not to be identified.

The share sale could value SpaceX at over $125 billion (roughly Rs. 9,68,906 crore), surpassing fintech giant Stripe, which was valued at $115 billion (roughly Rs. 8,91,439 crore) in a secondary sale. It could not be learned how many shares have been made available for sale by the company.

It is common for highly valued private companies to offer shares in the secondary market to introduce liquidity for early investors and employees.

Reuters could not determine if Chief Executive Elon Musk, who owns 44 percent of the SpaceX and signed a $44 billion (roughly Rs. 3,40,923 crore) deal to acquire Twitter, are among the sellers. Musk is also the chief executive of Tesla. SpaceX did not immediately respond to Reuters' request for comment. The New York Post first reported on the private placement on Monday.

In the capital-intensive business, SpaceX has raised $337.4 million (roughly Rs. 2,615 crore) in December and $1.16 billion (roughly Rs. 8,990 crore) in equity financing last April, according to regulatory filings.

The company competes with former Amazon.com Chief Executive Jeff Bezos's space venture Blue Origin and billionaire Richard Branson's Virgin Galactic in the burgeoning constellation of commercial rocket ventures. SpaceX has already launched numerous cargo payloads and astronauts to the International Space Station for the National Aeronautics and Space Administration (NASA), including 19 rocket launches this year alone.

© Thomson Reuters 2022