SpaceX, the revolutionary aerospace manufacturer spearheaded by Elon Musk, has just achieved a monumental milestone: a $350 billion valuation. This breathtaking figure emerged from a recent $1.25 billion insider share purchase agreement, representing a remarkable 67% increase from its previous $210 billion valuation set just months ago in June. This not only makes SpaceX the most valuable private startup globally but also surpasses the market capitalization of established aerospace giant Boeing, currently sitting at $122.78 billion.
The sheer scale of this valuation is amplified by an extraordinary detail: almost none of SpaceX’s existing investors opted to sell their shares, even at this unprecedented price point of $185 per share. According to Bloomberg, citing an internal email, SpaceX itself contributed up to $500 million to the buyback, with the remainder coming from other investors. This unprecedented investor loyalty underscores the immense faith placed in SpaceX’s future prospects and its groundbreaking technological advancements.
“What’s really crazy about this is that almost no investors wanted to sell shares even at a $350B valuation! SpaceX reduced the amount of shares it bought back from employees in order to allow some new investors in,” Musk stated on Wednesday, confirming the new valuation and highlighting the high demand even at this significantly inflated price. This surprising lack of seller interest forced SpaceX to adjust its buyback strategy, opening doors for new investors to participate in the company’s continued growth.
This remarkable success stands in stark contrast to the pressures faced by publicly traded companies. Musk has consistently dismissed the idea of an initial public offering (IPO) for SpaceX, citing the intense focus on short-term results that often overshadow long-term vision and innovation. This decision allows SpaceX to maintain its long-term focus and pursue ambitious goals without the constraints of quarterly earnings reports.
For those seeking exposure to SpaceX’s growth, despite its private status, options exist. Investors can explore avenues like Destiny Tech100 Inc. (DXYZ) and Cathie Wood’s Ark Venture Fund (ARKVX) to gain indirect participation in the company’s remarkable journey. The future of space exploration, and indeed the future of business innovation, looks brighter than ever thanks to SpaceX’s phenomenal success and its unwavering investor confidence.
