SpaceX to raise another $750 million in stock sale; earnings rise to $8 billion in ’23
According to anonymous sources, a new stock sale at SpaceX is likely to raise another $750 million because of enthusiasm on Wall Street for the stock due to the company’s growing earnings, which are expected to double to $8 billion this year.
Last week, CNBC reported that Elon Musk’s SpaceX valuation reached nearly $150B following an announcement of a stock sale by existing investors. According to a copy of the purchase offer sent by CFO Bret Johnsen, which CNBC obtained, the company has entered into an agreement with new and existing investors to sell up to $750 million in stock at a price of $81 per share. This represents a 5% increase from the previous secondary sale at $77 per share, which valued the company at approximately $140B. SpaceX has not provided any comments regarding the purchase offer.
Though the article does not say, that revenue comes from two sources, SpaceX’s rocket launches and its Starlink constellation. In the first case the company dominates the launch industry, because its launch price is so much cheaper than everyone else. In the second case, Starlink is producing so much revenue because Elon Musk forced the company to move fast and get its satellites in orbit quickly. Though both SpaceX and Amazon announced their internet constellations at about the same time, Amazon has still not launched any satellites, while SpaceX has more than 4,000 in orbit. This active and operating constellation has allowed SpaceX to grab market share that Amazon is now likely never to get, even when it begins launching.
All this makes SpaceX very appealing to investors, which is why its private stock price has gone up. It is also why it has been able to raise now almost $11 billion in private investment capital for building both Starlink and its Starship/Superheavy rocket.
According to anonymous sources, a new stock sale at SpaceX is likely to raise another $750 million because of enthusiasm on Wall Street for the stock due to the company’s growing earnings, which are expected to double to $8 billion this year.
Last week, CNBC reported that Elon Musk’s SpaceX valuation reached nearly $150B following an announcement of a stock sale by existing investors. According to a copy of the purchase offer sent by CFO Bret Johnsen, which CNBC obtained, the company has entered into an agreement with new and existing investors to sell up to $750 million in stock at a price of $81 per share. This represents a 5% increase from the previous secondary sale at $77 per share, which valued the company at approximately $140B. SpaceX has not provided any comments regarding the purchase offer.
Though the article does not say, that revenue comes from two sources, SpaceX’s rocket launches and its Starlink constellation. In the first case the company dominates the launch industry, because its launch price is so much cheaper than everyone else. In the second case, Starlink is producing so much revenue because Elon Musk forced the company to move fast and get its satellites in orbit quickly. Though both SpaceX and Amazon announced their internet constellations at about the same time, Amazon has still not launched any satellites, while SpaceX has more than 4,000 in orbit. This active and operating constellation has allowed SpaceX to grab market share that Amazon is now likely never to get, even when it begins launching.
All this makes SpaceX very appealing to investors, which is why its private stock price has gone up. It is also why it has been able to raise now almost $11 billion in private investment capital for building both Starlink and its Starship/Superheavy rocket.