Spacex Just Jumped To $350 Billion In Value: Here's How Elon Musk Did It

SpaceX, founded successful 2002 by Elon Musk, has transformed aerospace by creating reusable rockets and dramatically reducing motorboat costs. From achieving nan first commercialized spacecraft to dock pinch nan International Space Station to processing nan Starship, nan world's largest rocket system, nan institution has consistently lifted disconnected pinch important caller abstraction technology.

Building connected these achievements, SpaceX is now reportedly exploring a tender connection that would worth it astatine astir $350 billion, a 67% leap successful worth only from mid-2024.

SpaceX's Recent Tender Offer and Valuation Surge

In December 2024, reports emerged that SpaceX is negotiating a tender offer to waste insider shares, which would worth nan institution astatine astir $350 billion.

This is simply a monolithic 67% summation from its erstwhile valuation of $210 cardinal six months ago. If finalized, this valuation would position SpaceX arsenic a premier candidate for a lucrative first nationalist offering, a move that Musk has many times ruled out.

How SpaceX Makes Money

SpaceX makes money done 3 main channels: commercialized outer launches, NASA cargo missions, and its Starlink net service. SpaceX whitethorn get a 3rd of its money from authorities contracts, but it operates for illustration a tech company—constantly testing and improving to trim costs.

Using reusable rockets for illustration nan Falcon 9 and Dragon spacecraft, nan institution has slashed motorboat costs from hundreds of millions to a fraction of that—around $60 cardinal to $70 cardinal per mission. In addition, its quickly expanding Starlink work has accrued from astir 1 cardinal subscribers astatine nan extremity of 2022 to much than 4 cardinal successful 2024.

Impact connected Elon Musk's Net Worth

Elon Musk, who owns an estimated 42% liking successful SpaceX, has seen his nett worthy summation substantially pinch nan company's rising valuation.

The caller valuation adds astir $40 cardinal to his wealth, offsetting losses from different ventures and reinforcing his position arsenic nan world's richest individual—a staggering $344 cardinal (as of December 2024).

Reasons for Remaining Private

Despite its monolithic valuation, SpaceX remains private—a prime that gives Musk complete power complete nan company's direction. Without shareholder pressure, SpaceX tin attraction connected semipermanent goals and return bigger risks, particularly connected experimental projects that mightiness interest accepted investors.

Thus, this statement lets SpaceX prosecute eager goals for illustration Mars colonialism without having to warrant each disbursal to shareholders aliases interest astir quarterly net reports.

The Bottom Line

SpaceX's imaginable $350 cardinal valuation reflects much than conscionable its rocket launches and outer internet. The fig signals really abstraction technology—once nan domain of authorities agencies—has go large business. As SpaceX pushes up pinch Mars missions and expands Starlink's reach, it's reshaping what backstage companies tin execute successful space.