SpaceX in Talks to Sell Shares at $200 Billion Valuation

Bloomberg News reported on Thursday that Elon Musk’s SpaceX has initiated discussions about selling existing shares in a deal that could value the company at approximately $200 billion, citing sources familiar with the matter.

Higher Valuation Compared to Previous Tender Offer:

The proposed valuation surpasses the $180 billion valuation from SpaceX’s previous tender offer. The report indicates that the shares might be sold at a price between $108 and $110.

SpaceX did not instantly respond to a Reuters request for comment. However, Musk stated in a post on X, “SpaceX has no need for additional capital and will be buying back shares.”

Common Practice Among High-Profile Private Companies:

SpaceX, one of the most profitable startups globally, employs a common tactic among high-profile private companies. Tender offers allow insiders or employees to sell their shares without the company having to file for an initial public offering (IPO). This strategy can further strengthen the company’s financials before deciding to enter the public markets.

Tender offers provide a means for insiders or employees to liquidate their shares, offering liquidity without an IPO’s complications and regulatory requirements. 

This approach can benefit SpaceX, allowing it to bolster its financial standing and potentially prepare for a future public offering under more favorable conditions.