SpaceX, Founded by Elon Musk, Valued at $74 Billion After Raising $850 Million

By Mariliana Fotopoulou Wednesday, February 17, 2021

SpaceX, an aerospace company founded by Tesla CEO Elon Musk, raised $850 million in the latest funding round that values the business at about $74 billion.

SpaceX headquarters in California.

Business Valuation Soars 60%

CNBC reports that SpaceX completed the funding round last week, despite the fact that it raised $2 billion six months ago. During that funding round, the aerospace company had a business valuation of $46 billion, meaning that the business saw its valuation soar by about 6% in just six months.

The media outlet also reports that existing investors and insiders were able to sell a further $750 million in a secondary transaction.

Elon Musk’s aerospace company sold a number of shares at $419.99 apiece, which is a cent below the famous $420 per share mark. In 2018, the US Security and Exchange Commission (SEC) alleged that Elon Musk used this number when threatening to take the electric vehicle (EV) company private as a pot reference.

“We allege that Musk had arrived at the price of $420 by assuming a 20premium of what Tesla’s then existing share price (was), and then rounding up to $420 because of the significance of that number in marijuana culture, and his belief that his girlfriend would be amused by it,” Steven Peikin, co-director of enforcement at the SEC, said during the press conference.

The aerospace business is working on an ambitious Starlink project, which aims to create a network of interconnected satellites in low Earth orbit. More than a thousand satellites have already been launched, while the business has already attracted over 10,000 users in the United States (US) and abroad.

Eventually, SpaceX has Starlink IPO (initial public offering) plans. However, the company must become financially sustainable before the IPO can take place.

“SpaceX needs to pass through a deep chasm of negative cash flow over the next year or so to make Starlink financially viable. Every new satellite constellation in history has gone bankrupt. We hope to be the first that does not...Starlink is a staggeringly difficult technical and economic endeavor. However, if we don’t fail, the cost to end users will improve every year,” he said.

“Once we can predict cash flow reasonably well, Starlink will IPO,” he added.


SpaceX, an aerospace company founded by Elon Musk, secured $850 million in new funding at a business valuation of around $74 billion.

About the Author

Headshot of Mariliana Fotopoulou

Mariliana has an MSC in Consumer Analytics and Business Strategy. She has a special interest in fast-moving industries and Big Data.

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