Elon Musk’s SpaceX wants 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 huge round of new funding, CNBC has learned, sending the valuation of the private company to about 7 127 billion.

According to a company-wide email received by CNBC, the space venture seeks to raise up to $ 1.725 billion in new capital at $ 70 per share. Significantly, SpaceX split its stock price -1 for 10 in February, lowering the common stock to $ 56 per share – the new valuation represents a 25% increase.

SpaceX is conducting a secondary sale of up to $ 750 million in common stock to the company’s internal and existing shareholders. The company regularly handles these secondary offers as a way to sell equity to long-term stockholders as it has remained private for more than 20 years since SpaceX was founded.

The details of the cash transfer were not disclosed earlier. The New York Post first reported that SpaceX wanted to raise more funds, and noted that, citing unnamed sources, the capital increase has so far seen “cool demand”.

The company’s valuation has risen over the past few years as SpaceX has raised billions for two capital-intensive projects: the next-generation Rocket Starship and its global satellite internet network, Starlink.

The company’s funding round comes when founder and CEO Elon Musk is accused of sexual harassment by a former SpaceX jet flight attendant. The billionaire denies the allegations against him as “wild allegations.” Flight Attendant has reportedly not sued SpaceX, and instead reached a $ 250,000 separation agreement in 2018.

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