Elon Musk's commercial space flight company, SpaceX, could potentially sell insider shares in a deal that would push the space exploration giant's valuation to around $400 billion, surpassing Musk's $395 billion net worth.
What Happened: The potential deal would mark the biggest valuation of a privately held company in U.S. history, sources cited by Bloomberg said on Tuesday. It would surpass SpaceX's previous record of $350 billion.
The valuation is largely based on SpaceX's LEO or Low Earth Orbit satellite internet provider Starlink, which accounts for over half the company's revenue, the report said.
SpaceX's advances in rocket technology with its Starship rocket program are also a driving factor for the valuation.
The fundraising strategy involves the company selling a "small number" of new shares to investors, with SpaceX then selling insider shares at a price determined by the initial round, the report said.
Why It Matters: The news comes as tensions continue to rise between Musk and President Donald Trump over the latter's tax bill, which Musk says would raise the debt deficit to $5 trillion.
The billionaire also announced he would establish a political party, dubbed the ‘America Party,' as a third option in the U.S.'s two-party system. Musk's plans were heavily criticized by Trump.
However, Musk's feud with the President could have lasting effects on the billionaire's businesses like Tesla Inc. TSLA as the Tax bill axed the $7,500 EV credit. Meanwhile, SpaceX regularly collaborates with NASA, most recently on the Ax-4 mission to the ISS.
Elsewhere, despite criticism, Musk has refused to back down on his attacks on the Trump administration and recently even reignited the Jeffrey Epstein client list row.
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