The rocket-fueled rise of Elon Musk’s company SpaceX appears to be stalling out, with the firm planning to sell shares next month in a deal that prices them around the identical level as this summer, The Post has learned.
The closely held company — whose satellite-launching Starlink unit has reportedly struggled to fulfill profit goals despite rampant growth — is planning to launch a young offer in December valuing SpaceX at around $150 billion, the identical price tag it was assigned in a July tender offer, in accordance with reports.
SpaceX’s July tender, which raised $750 million in money, in accordance with Bloomberg, followed an identical deal in January that also had raised $750 million, but at a $137 billion valuation.
Terms of that tender had represented a gentle climb from May 2022, when SpaceX was valued at $125 billion.
Launching a young offer next month appears to substantiate that Musk isn’t considering a near-term IPO for its Starlink satellite division.
Bloomberg this month reported that Musk was discussing a possible Starlink IPO for as early as late 2024.
Musk on Nov. 15 posted on his X platform that reports of him considering a Starlink IPO are “false.”
Meanwhile, there are reasons Musk is probably not searching for an increased SpaceX valuation.
“Investors are still unsure in regards to the direction of Starlink,” one in every of the sources with knowledge of the tender said, adding that Starlink accounts for many of SpaceX’s value.
Starlink in 2022 reported $1.4 billion in revenue and a loss for the yr, in accordance with a September Wall Street Journal story that exposed how Starlink has lagged investor expectations.
In 2015, SpaceX forecast that Starlink would have 20 million customers. In 2022, it had barely multiple million.
Musk gave a more upbeat tackle financials in a Nov. 2 post on his X platform.
“Excited to announce that Starlink has achieved breakeven money flow! Excellent work by an incredible team. Starlink can also be now a majority of all energetic satellites and may have launched a a majority of all satellites cumulatively from Earth by next yr.”
Nevertheless, SpaceX isn’t currently planning to lift the valuation in next month’s tender, insiders said.
By staying conservative, SpaceX can attract investors without avoid answering uncomfortable questions, sources added.
“If anything, there’s confusion,” the source said.
SpaceX’s latest Starship rocket, designed for trips to the Moon and Mars, took off from Texas on Nov. 18 and reached space before each the booster and the spacecraft were lost in a pair of explosions minutes into the test flight.
Spokespeople for SpaceX and Musk didn’t return calls.
