SpaceX Considers Tender Offer That Could Boost Valuation to $350 Billion

SpaceX, the rocket manufacturing company led by Elon Musk, is reportedly in discussions to sell insider shares in a tender offer that could increase its valuation to approximately $350 billion, Benzinga reports.

The ongoing negotiations could result in terms that vary depending on the interest from both insider sellers and buyers, according to Bloomberg, which cited sources familiar with the matter.

Earlier reports in November suggested that SpaceX was targeting a valuation of $250 billion. However, recent updates indicate that the company’s valuation target has been raised to $350 billion, marking a significant jump from its valuation of $210 billion during a previous tender offer earlier this year. If the $350 billion valuation is realized, SpaceX would become the most valuable private startup in the world.

Unlike Tesla, which is a publicly traded company, SpaceX remains privately held. The secondary offering of shares would allow existing shareholders to sell their stakes, providing liquidity without the company going public.

Despite speculation around a potential initial public offering (IPO), Musk has previously dismissed the idea, citing the pressure for short-term results that publicly listed companies often face. SpaceX’s Chief Operating Officer, Gwynne Shotwell, recently indicated at a Baron Capital conference that the company is on track to make profits from its Starlink satellite internet service, which reached breakeven cash flow in November 2023. However, she emphasized that Starship, the company’s new rocket under development, would ultimately drive the company’s valuation even higher.