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SpaceX raises $850 million at Elon Musk's favorite price of $420 per share, report says

Feb 17, 2021, 23:52 IST
Business Insider
Tesla chief Elon Musk owns SpaceXPool/Getty Images
  • Elon Musk's SpaceX is now valued at about $74 billion, CNBC reported.
  • The aerospace company raised $1.9 billion in August to help fund its Starlink and Starship projects.
  • Musk said earlier in February that Starlink would go public at some point.
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Elon Musk's rocket and satellite company, SpaceX, has reportedly raised another $850 million, sending its valuation soaring to about $74 billion.

SpaceX raised the funds at a price of $419.99 per share, CNBC reported, citing people familiar with the financing. That's just shy of the $420 mark at which Musk in 2018 said he had the "funding secured" to take Tesla private; the Securities and Exchange Commission alleged it was a reference to weed.

SpaceX took in $1.9 billion in August, putting its valuation at about $46 billion. The company is gobbling up cash as it pursues ambitious projects such as its Starlink satellite internet service and Starship rockets.

The jump in SpaceX's valuation represents another victory for Musk, whose electric car-company, Tesla, has soared by about 350% in value over the past year. It has made the outspoken entrepreneur one of the richest people in the world.

Musk said on Twitter earlier in February that Starlink, which aims to build a "constellation" of satellites to provide high-speed internet to users around the world, "is a staggeringly difficult technical & economic endeavor."

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"However, if we don't fail, the cost to end users will improve every year," he added.

He said in other tweets that SpaceX "needs to pass through a deep chasm of negative cash flow over the next year or so to make Starlink financially viable," adding that "once we can predict cash flow reasonably well, Starlink will IPO."

SpaceX did not immediately respond to a request for comment.

Read more: A 29-year real estate veteran who's returned 446% to investors in the past decade breaks down the 4 trends driving the sector in 2021 - and shares 11 'attractively valued' stocks

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