SpaceX Prepares Tender Offer At $250bn Valuation

Matthew Broersma,
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SpaceX's Starship launches on fifth test flight in October 2024. Image credit: SpaceX

SpaceX to begin tender offer in December valuing company at $210bn, as Elon Musk’s xAI raises $5bn at $45bn valuation

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SpaceX is to begin a tender offer next month that intends to sell existing shares at about $135 (£107) each, valuing the aerospace firm at more than $250bn, up from about $210bn in a similar deal earlier this year, the Financial Times reported.

Meanwhile xAI, an artificial intelligence start-up which like SpaceX is controlled by Elon Musk, has raised $5bn at a valuation of $45bn, almost double its valuation of $24bn in a $6bn funding round in May, the report said.

The xAI round was carried out at “breakneck speed” with discussions with investors beginning only last month, according to the report.

The FT’s sources said the xAI funding round was already “fully allocated”, with all new shares assigned to investors, although the deal will not formally close until the end of November.

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Valuation jump

The deal was oversubscribed and featured only investors who backed xAI in its previous round, the paper said.

The report said there was already speculation that there could be a subsequent round in the first quarter of next year valuing xAI at $75bn, although it was unclear whether this had been communicated directly to investors by the company.

The rush to invest in Musk’s companies comes after he successfully backed Donald Trump in a presidential bid that is to see Trump take office in January.

The coming administration is expected to introduce policies favorable to Musk’s companies, including reducing regulatory oversight of SpaceX and other Musk companies.

Reduced oversight

Under the coming administration, SpaceX is expected to advocate for softer regulations on worker safety and safety of participants in private space flights.

A Reuters report last year documented 600 worker injuries at SpaceX facilities in the US and found the company had disregarded safety regulations and standard practices.

Last week Trump appointed Musk and biotech entrepreneur Vivek Ramaswamy to lead a “department of government efficiency” to look for ways to “dismantle” bureaucracy, the president-elect said in a statement.

Shares in Musk’s EV manufacturer Tesla have risen about 30 percent since the election.