Elon Musk is known for creating companies and increasing their valuation into hundreds of billions of dollars before the initial public offering (IPO), with the most notable example being Tesla (NASDAQ: TSLA) and other currently private ones such as SpaceX, Neuralink, and xAI.
Now, SpaceX plans to sell insider shares at $112 each in a tender offer, significantly boosting the value of Elon Musk’s space and satellite company to nearly $210 billion.
This valuation exceeds previous expectations, with SpaceX’s last known valuation of $180 billion in December.
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SpaceX is the most valuable private company in the U.S.
The new valuation marks a record for an American private company while being only second in the world to the $268 billion valuation of ByteDance, the parent company of social media giant TikTok.
Despite this, SpaceX’s valuation now places it on par with some of the world’s largest publicly traded companies by market capitalization, such as Wells Fargo (NYSE: WFC), Disney (NYSE: DIS), and McDonalds (NYSE: MCD).
The terms of the tender offer are not yet finalized, and the size of the offer could change based on the level of interest from insider sellers and buyers. This flexibility allows SpaceX to adjust the offer in response to market demand, ensuring that the transaction meets the needs of both sellers and investors.
SpaceX tasked with destroying ISS
NASA has awarded SpaceX a multimillion-dollar contract to safely deorbit the International Space Station (ISS) at the end of its operational life after 2030.
The contract, potentially worth $843 million, will allow Elon Musk’s company to build a vehicle capable of destroying the orbiting laboratory in a manner that avoids risks to populated areas.
Such a contract is expected to further raise SpaceX’s operational capabilities and increase its valuation.
