SpaceX valuation soars to $350 billion

Elon Musk's aerospace company SpaceX has reached a new valuation milestone of $350 billion, following a secondary share sale. The company and investors have agreed to purchase stock from insiders, totaling $1.25 billion at a price of $185 per share. This transaction does not involve the raising of new capital but is a secondary sale of existing shares.

In a move underscoring its financial strength, SpaceX itself is participating in the buyback, purchasing up to $500 million in common stock. These secondary rounds, which occur roughly twice a year, allow employees and other shareholders the opportunity to liquidate their holdings. This latest valuation marks a significant increase of 67% from the company's previous valuation peak of $210 billion achieved in June.

The increase in SpaceX's valuation reflects its continued expansion and dominance in the space industry, particularly as it maintains a near-monopoly on the U.S. satellite launch market. The company's Falcon rockets have become the standard for satellite launches as competitors lag in deploying operational rockets.

Another significant contributor to SpaceX's growth is its Starlink satellite internet service, which has deployed around 7,000 satellites and claims approximately 5 million subscribers. This service is considered a central economic pillar for the company.

SpaceX's new valuation would place it among the top 25 firms in the S&P 500 .

SpaceX did not provide an immediate comment on the share sale process when contacted by CNBC. The news of the share pricing at $185 was initially reported by Bloomberg.

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Source: Investing.com