Billionaire Elon Musk's SpaceX explores insider share sale, valued at over $175 billion

Billionaire Elon Musk's space exploration company SpaceX is in talks to sell insider shares at a significant valuation exceeding $175 billion, as per a Bloomberg report. Discussions are underway, aiming for a tender offer valued between $500 million and $750 million, sources told the publication, adding that the potential share price could be approximately $95 each.

The terms and size of the tender offer remain flexible, subject to the interest of both sellers and potential buyers within the company, the report added.

This valuation leap signifies a notable increase from the $150 billion valuation secured by SpaceX earlier this summer during a tender offer. Should this materialise, SpaceX would rank among the world’s top 75 companies by market capitalisation. This puts it in league with giants such as T-Mobile USA Inc. ($179 billion), Nike Inc. ($177 billion), and China Mobile ($176 billion), according to data compiled by Bloomberg.

A Dominant Force in the Space Industry

Headquartered in Hawthorne, California, the Musk-led SpaceX holds a commanding position in the commercial space launch services market, primarily through its Falcon rockets. The company conducts missions for private-sector clients, governmental agencies such as NASA, and other entities, solidifying its market dominance.

Moreover, SpaceX operates Starlink, an internet service powered by an expanding fleet of satellites in low-Earth orbit, serving as a lucrative arm of its operations.

Promising Growth Trajectory

Recent reports from Bloomberg News indicate SpaceX's estimated revenue for this year to hover around $9 billion, stemming from its rocket launch and Starlink ventures. Forecasts suggest a substantial rise in sales to approximately $15 billion by 2024, marking a trajectory of significant growth.

In further strategic moves, discussions revolve around a potential initial public offering (IPO) for Starlink as early as late 2024. This strategic move aims to capitalize on the robust demand for space-based communication services, indicating SpaceX's proactive steps in leveraging market opportunities.

SpaceX, officially known as Space Exploration Technologies Corp., did not respond to queries, the report added.