Elon Musk’s SpaceX is poised to become America’s most valuable startup


Billionaire Elon Musk’s SpaceX is poised to become America’s most valuable startup, its valuation hitting more than $125 billion in an ongoing secondary market share sale, sources familiar with it told Reuters. folder.

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The shares, which are trading at around $72, jumped in value from last October, when SpaceX shares were sold at $56 apiece after a 10-1 split and valued the rocket company at 100. billions of dollars.

No new shares have been issued in the secondary offering, but the company has indicated to investors it may do so later this year, said one of the sources, who asked not to be identified.

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The stock sale could value SpaceX at more than $125 billion, overtaking fintech giant Stripe, which was valued at $115 billion in a secondary sale.

It was not possible to find out how many shares were put up for sale by the company. It is common for highly regarded private companies to offer shares on the secondary market to introduce cash for early investors and employees.

In this August 27, 2017, file photo, SpaceX CEO Elon Musk congratulates the teams participating in the Hyperloop Pod Competition II at SpaceX’s Hyperloop track in Hawthorne, California. (AP Photo/Damian Dovarganes, File/AP Newsroom)

Reuters could not determine whether chief executive Elon Musk, who owns 44% of SpaceX and has signed a $44 billion deal to acquire Twitter Inc, is among the sellers. Musk is also the CEO of Tesla Inc.

SpaceX did not immediately respond to Reuters’ request for comment. The New York Post first reported on the private placement on Monday.

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In the capital-intensive sector, SpaceX raised $337.4 million in December and $1.16 billion in equity funding last April, according to regulatory filings.

The company competes with Blue Origin, the space venture of former Amazon.com chief executive Jeff Bezos, and billionaire Richard Branson’s Virgin Galactic, in the burgeoning constellation of commercial rocket companies.

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SpaceX has already launched numerous cargo payloads and astronauts to the International Space Station for the National Aeronautics and Space Administration (NASA), including 19 rocket launches this year alone.


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