How Elon Musk's SpaceX Can Become Most Valued Startup After $400 Billion Valuation

Tech billionaire Elon Musk's rocket and satellite maker SpaceX is preparing an insider share sale that would value the company at approximately $400 billion, according to a report by Bloomberg. The deal marks a rapidly climbing value for SpaceX -- around 14 per cent more than its December valuation -- and cements Musk's company as the world's highest-valued startup as well as the most valuable private company globally. 

Per the Bloomberg report, the private aerospace juggernaut is setting the per-share price at $212 for the upcoming transaction, a significant increase from the $185 per share pricing during the prior transaction in December.

SpaceX representatives have not released any official statement on the matter yet. 

But the strategy of Musk's company is reportedly to launch a primary fundraising round during which it would sell a small number of new shares to investors. Then, SpaceX would sell employee and early investor shares in a secondary offering, with the price being determined by the primary round, per a Bloomberg report.

The details could change depending on interest from insider sellers and buyers, as seen during previous company buybacks. One of SpaceX's fundraising rounds in 2021 generated some $850 million. 

The new round of insider share sales, surpassing SpaceX's previous record of $350 billion from valuation in December, reflects a range of factors, including the rise of the company's fast-growing Starlink satellite internet unit. Starlink sales reportedly account for more than half of SpaceX's annual revenue. 

The other factor contributing to this is SpaceX's ability to set new milestones with its Starship rocket program. Already among the industry's preeminent rocket launch providers, SpaceX is reportedly working to bring the development of its revolutionary launch system back on track after a string of explosive setbacks earlier this year, including a huge blast in Texas in June.