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SpaceX could hit a $127 billion valuation with a new round of funding

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Elon Musk’s SpaceX company is seeking to raise a new round of $1.7 billion in funding, which would take its valuation to $127 billion, according to CNBC.

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The company’s target of $1.7 billion in new funds would bring the price to $70 per share — a 25% increase — according to a company-wide email obtained by CNBC.

In February, SpaceX split its February stock price 10-for-1, reducing the stock price to $56 from $560, according to an earlier CNBC report.

“The split has no impact on the overall valuation of the company or the overall value of your SpaceX holdings,” the company said at the time in an email obtained by CNBC.

In October, SpaceX’s valuation hit $100 billion, following a secondary sale of shares by investors, as GOBankingRates previously reported.

SpaceX had reached an agreement with new and existing investors to sell up to $755 million in insider stock at $560 per share, which increased the company’s valuation to $100.3 billion, a 33% increase from SpaceX’s previous valuation of $74 billion to $419.99 per share in February. when the company had raised nearly $1.2 billion.

This latest funding round would make SpaceX the most valuable U.S. startup on record, according to Bloomberg, which valued the round at $125 billion.

At the same time, SpaceX proceeds to a resale to employees, at the same price. Bloomberg reports that companies typically conduct them in conjunction with a regular funding cycle.

The company often conducts them, to allow longtime shareholders to sell stock, as SpaceX remains private more than 20 years since its founding, CNBC added.

SpaceX’s valuation has skyrocketed in recent years, raising billions to fund work on two capital-intensive projects: the next-generation rocket Starship and its Starlink global satellite internet network, CNBC reported.

In December, Musk, speaking remotely at the Wall Street Journal CEO Conference, said it had been difficult to develop Starship – the next-generation vehicle the company plans to use to take humans to the Moon and on Mars, as GOBankingRates reported at the time. .

Starship “absorbs more of my mental energy than probably anything else,” Musk said at the time, according to Bloomberg. “It’s so difficult that there are times when I wonder if we can actually do it.”

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And in November, Space Explored reported an email sent by Musk to employees in which he said that “what is to say is that we face a real risk of bankruptcy if we cannot achieve a Starship flight rate of at least once every two weeks next year.

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About the Author

Yael Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She has also worked as a VP/Senior Content Writer for major New York-based financial firms, including New York Life and MSCI. Yael is now independent and most recently co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare”, with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in journalism from New York University and one in Russian studies from Toulouse-Jean Jaurès University, France.