SpaceX may sell insider shares at historic $800 billion valuation; will the Elon Musk company float IPO soon?

According to information quoted by Bloomberg from sources familiar with the development, SpaceX, the space transportation and satellite construction company managed by Elon Musk, is preparing to sell its insider shares in a transaction that will be valued at over $500 billion.

This means SpaceX is on track to break OpenAI’s record by selling its shares for $500 billion, a first in history.

How much will SpaceX be valued?

Selling insider shares could boost SpaceX’s valuation to about $800 billion, according to people quoted by Bloomberg.

Some people with knowledge of the matter told the news agency that the company’s final tender offer could change depending on the interest of insider sellers and buyers or other factors.

Details of the SpaceX insider sale were discussed by SpaceX’s board of directors at Starbase headquarters in Texas on Thursday.

Another person briefed on the matter said that the SpaceX share price being discussed was higher than $400 per person. This would put the value of the Elon Musk-run company at between $750 billion and $800 billion, but details could change.

If the plan is approved, SpaceX is on track to surpass OpenAI and become the most valuable private company. ChatGPT’s owner achieved a record valuation of $500 billion in October.

The $400 per share figure is a significant jump from the $212 figure set in July, when SpaceX was raising financing and selling shares at a $400 billion valuation.

However, the company did not make any public statement regarding the share sale agreement.

The Wall Street Journal and Financial Times had previously reported that a deal would value SpaceX at $800 billion, citing unnamed people familiar with the matter.

SpaceX’s latest valuation news sent shares of satellite TV and wireless communications company EchoStar Corp. rising as much as 18%. This comes a month after EchoStar agreed to sell spectrum licenses to SpaceX for $2.6 billion.

Is SpaceX’s IPO on the way?

Another person with knowledge of the matter told Bloomberg that SpaceX could go public late next year.

If SpaceX’s IPO launches, its $800 billion valuation could send the company into an elite group of the 20 largest public companies several notches below Musk’s Tesla.

If SpaceX’s IPO involves selling 5 percent of the company at an $800 billion valuation, it will need to sell $40 billion in shares; which would make it the biggest IPO of all time. This is well above Saudi Aramco’s $29 billion listing in 2019.

Listing would also expose SpaceX to the volatility that comes with being a public company versus private companies whose valuations are closely guarded secrets.