Privately held SpaceX, the commercial space company led by Elon Musk, is reportedly planning a secondary share sale that would value the company at $800 billion.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
The Wall Street Journal was first to report the stock sale by SpaceX, citing unnamed people familiar with the matter. The report stresses that talks around a secondary share sale are ongoing and a final decision has not been made by management.
Apparently, SpaceX’s Chief Financial Officer (CFO) Bret Johnsen has told investors about the potential share sale in recent days. The $800 billion valuation is double the $400 billion that SpaceX was valued at in a previous secondary share sale conducted earlier this year.
Elon Musk’s Involvement in SpaceX
A secondary share sale is a transaction where an existing shareholder of a company sells their shares to another investor. Typically, insiders at a company sell their stock pre-IPO during a secondary share sale. SpaceX, which was founded by Tesla (TSLA) CEO Elon Musk and has current contracts with NASA, has not commented officially or publicly on a new secondary share sale.
Musk remains heavily involved with SpaceX and its operations. The company has a leading position in the U.S. satellite launch market through its reusable Falcon rockets. SpaceX’s Starlink satellite internet business is seen as the main economic driver of the company, with more than 5,000 satellites launched and in excess of two million subscribers worldwide.
Is TSLA Stock a Buy?
The stock of Tesla has a consensus Hold rating among 34 Wall Street analysts. That rating is based on 13 Buy, 11 Hold, and 10 Sell recommendations issued in the last three months. The average TSLA price target of $383.04 implies 15.75% downside from current levels.
