SpaceX, Elon Musk's aerospace company, has reached a valuation of $180 billion through an ongoing secondary share sale. This sale involves insiders selling their existing shares at a price of $97 per share. The deal is expected to close in January and does not involve raising new capital.
This valuation marks a 20% increase from SpaceX's previous high of $150 billion, which was achieved through a secondary sale in July at $81 per share. The company typically conducts these secondary rounds twice a year, providing an opportunity for employees and other shareholders to sell their stock.
SpaceX currently holds a near-monopoly on the U.S. satellite launch market, thanks to its Falcon rockets. Its competitors have faced challenges in developing operational rockets to compete. The company's Starlink satellite internet business, which has launched over 5,000 satellites and boasts over two million subscribers, is seen as a key driver of its economic success.
SpaceX's Starship vehicle, a next-generation reusable rocket, has been advancing in flight tests. The company aims to create a rocket of unprecedented scale and power with this project.
The company's $180 billion valuation places it above the market value of top U.S. defense contractors such as Boeing, Lockheed Martin, and Northrop Grumman. It also surpasses the market value of major U.S. telecommunications companies like Verizon and AT&T.
SpaceX's Starlink business has experienced rapid growth, further strengthening the company's influence in the industry.
At the time of writing, SpaceX has not commented on the sale process. Bloomberg was the first to report the $97 per share pricing.
Overall, SpaceX's ongoing secondary share sale has propelled its valuation to $180 billion, reflecting its dominant position in the satellite launch market and the success of its Starlink business. The company's Starship project also shows promise for future advancements in rocket technology.