SpaceX to offer insider shares? Elon Musk clarifies amid market buzz over $800B valuation

The Founder & CEO of SpaceX, Elon Musk, refuted the reports claiming that his rocket and satellite maker SpaceX is seeking a valuation of $800 billion through a share sale. In a post on X, Musk noted that SpaceX has generated positive cash flow for many years and conducts share buybacks twice annually.

“There has been a lot of press claiming SpaceX is raising money at $800B, which is not accurate,” Elon Musk said in a post on his social media platform X. “SpaceX has been cash flow positive for many years and does periodic stock buybacks twice a year to provide liquidity for employees and investors,” he said.

“Valuation increments are a function of progress with Starship and Starlink and securing global direct-to-cell spectrum that greatly increases our addressable market. And one other thing that is arguably most significant by far,” he added.

Musk's response came after the news came to light following the sources hinting to Bloomberg News that SpaceX is gearing up to offer insider shares in a deal that will value the firm at almost $800 billion. The report also indicated that the sale would enable some employees and investors to liquidate part of their stake.

SpaceX to Offer Insider Shares?

Earlier, on December 5, a source told Bloomberg News that SpaceX is reportedly preparing a new insider shares sale in a transaction that would value Elon Musk’s rocket and satellite maker at more than OpenAI’s record-setting $500 billion valuation. Another source indicated that the proposed share price, above $400 per share, would place SpaceX’s valuation between $750 billion and $800 billion, though final terms are still subject to change.

The board of the company discussed the tender offer on Thursday at its Starbase hub in Texas. If finalised, it would make SpaceX once again the most valuable privately held company in the world, surpassing the past record of $500 billion that ChatGPT owner OpenAI set in October.

Meanwhile, the valuation marks a sharp jump in the company from July, when shares were priced at $212 each during a funding round that valued the company at $400 billion. As the world’s leading rocket operator, SpaceX continues to dominate the aerospace sector with its Falcon 9 missions that regularly send satellites and astronauts to orbit.