Elon Musk’s SpaceX seeks to raise $1.7 billion in new funding


A Falcon 9 rocket launches a batch of Starlink satellites into orbit on April 29, 2022.

SpaceX

SpaceX is raising a massive new round of funding, CNBC has learned, bringing the private company’s valuation to around $127 billion.

The space company is seeking to raise up to $1.725 billion in new capital, priced at $70 per share, according to a company-wide email obtained by CNBC on Friday. Notably, SpaceX split its stock price 10-for-1 in February, which reduced the common stock to $56 per share – the new valuation representing a 25% increase.

SpaceX is also making a secondary sale to company insiders and existing shareholders for up to $750 million in common stock. The company regularly makes these secondary offerings, as a way for longtime shareholders to sell stock, given that SpaceX has remained private for more than 20 years since its founding.

Details of the cash injection had not previously been disclosed. The New York Post first reported that SpaceX was looking to bring in more funding and noted, citing unnamed sources, that the capital raise has so far seen “lukewarm demand.”

The company’s valuation has skyrocketed in recent years as SpaceX has raised billions to fund work on two capital-intensive projects: the next-generation rocket Starship and its global satellite internet network Starlink.

The company’s funding round comes as founder and CEO Elon Musk is embroiled in sexual harassment allegations allegedly made by a former SpaceX flight attendant. The billionaire has denied the charges against him as “wild accusations”. The stewardess reportedly did not sue SpaceX and instead struck a $250,000 severance deal in 2018.


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