Latest / Elon Musk Podcast / SpaceX Closes in on $150 Billion Valuation After Stock Sale

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SpaceX Closes in on $150 Billion Valuation After Stock Sale · Elon Musk Podcast

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  Hi everybody, and welcome back to another episode of the Elon
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  Musk podcast, where we dive into the world of cutting edge
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  technology, space exploration and the visions of Elon Musk.
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  Today we're zooming into a landmark moment for SpaceX, the
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  leading private aerospace manufacturer and space
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  transportation company, which is edging closer to a remarkable
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  valuation of $150 billion. This news follows an agreement.
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  This will up to $750 million in stock to a mix of new and
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  existing investors, reinforcing Spacex's commanding position in
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  the global space industry. Now as we unpack this
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  development, we'll delve into the challenges and triumphs on
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  the journey towards the successful deployment of
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  Spacex's ambitious Starship project and despite facing
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  technological complications, regulatory hurdles and even
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  legal challenges. SpaceX continues to aim high
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  with an unwavering determination to revolutionize space travel.
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  But before we get into that, let's take a brief commercial
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  break. Stay tuned, we'll be right back
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  with more on this exciting development and some Starship
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  news. Welcome back, everybody.
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  SpaceX, the private aerospace manufacturer and space
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  transportation company, is moving closer to a staggering
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  valuation of $150 billion after announcing an agreement.
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  To sell up to $750 million in stock to both new and existing
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  investors. The deal which was announced
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  last week, was arranged based on a price of $81.00 per share.
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  Now this new share price represents a 5% increase from
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  the company's prior secondary stock sale which was held at $77
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  per share. And as a result, this increased
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  share price is pushing the company's valuation close to
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  $140 billion. Now, this development is
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  noteworthy due to Spacex's choice not to make it initial
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  public offering or an IPO. Instead, the company typically
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  conducts secondary stock selling rounds for employees and
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  shareholders about twice a year now.
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  This approach allows SpaceX to raise capital without exposing
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  itself to the pressures and responsibilities that come with
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  public company status, thereby enabling it to continue to
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  pursue this ambitious and longterm objectives.
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  One of those is the SpaceX Starship.
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  And another is a journey to Mars.
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  Now SpaceX is led by CEO Elon Musk, who is known for his
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  ambitious vision for space exploration.
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  The company has made significant progress in recent years
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  developing reusable rockets this out and revolutionizing the
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  whole launch industry. Now SpaceX is also developing
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  the Starship rocket, which is designed to carry both crew and
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  cargo to Earth orbit, to the moon, and also to Mars.
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  And the Starship project is one of the most ambitious in the
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  history of space exploration, if not the most ambitious.
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  However, it has also been met with challenges, and in April,
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  the Starship prototype exploded during a test flight.
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  The company is currently working to address the issue and is
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  hoping to launch Starship into orbit in later of 2023.
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  And of course, Spacex's ambitions are not solely tied to
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  the company's internal goals and timeline.
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  Are subject to the approval and regulations set by the Federal
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  Aviation Administration, and presently, the FAA has grounded
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  the Starship, ending an ongoing investigation into its botched
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  first flight. The regulatory body has
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  expressed its commitment to ensuring that any aerospace
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  activity is aligned with safety protocols and standards to
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  protect both human life and property on Earth, and the
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  complexities surrounding the Starship project extend beyond
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  technological and regulatory issues.
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  Legal challenges have also emerged, further complicating
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  the path to Starship successful launch.
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  The FAA is currently dealing with a lawsuit filed by a
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  coalition of conservation and local Texan nonprofit groups,
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  and these groups have contested the FA A's approval the Spacex's
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  Starship activities in Boca Chica, Texas, where the company
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  has established a private launch site in the production facility
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  known as Starbase. And in response to the lawsuit,
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  SpaceX recently filed a motion to dismiss it.
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  Categorically denying all claims leveled against it, and despite
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  these ongoing challenges, Musk remains resolute and confident.
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  Interestingly, he does not foresee SpaceX having to raise
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  additional funds for Starship * Lake or any of its other
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  programs. Must made this clear during a
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  Twitter Spaces discussion in late April.
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  The statement further attests to the financial robustness of
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  SpaceX and its ability to fund its ambitious projects.
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  Now SpaceX is consistent pattern of biannual secondary stock
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  sales. Provides its shareholders with a
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  unique opportunity to sell their stock.
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  While the company hasn't announced any forthcoming
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  capital fundraising rounds, Musk's declaration in April does
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  suggest a strong financial standing, he said.
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  To my knowledge, we do not need to raise incremental funding for
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  SpaceX, hinting at a level of fiscal stability that many
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  private companies can only aspire to reach a Spacex's
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  ambition stretch well beyond the confines of low Earth orbit,
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  though. Under a $2.89 billion contract,
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  SpaceX is set to use the Starship to land humans on the
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  moon as part of NASA's Artemis 3 mission in late 2025, early
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  2026. Then, under a separate $1.15
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  billion agreement, the Starship will again play a pivotal role
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  in NASA's Artemis 4 mission in 2028.
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  Now this signifies a return to the Moon after decades, an
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  endeavor. The not only cement, SpaceX is
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  standing in the industry. But also has profound
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  implications for the future of space exploration.
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  However, concerns loom that Spacex's Starship could delay
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  the Artemis 3 mission in 2026. These were voiced by NASA's
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  Associate administrator, Jim Free during a meeting in June,
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  and Free stated with the difficulties that SpaceX has
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  had, I think that's really concerning, indicating a level
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  of trepidation about Spacex's ability to fulfill its
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  obligations on time. And even in the faces of these
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  challenges, SpaceX continues to hold the title of the most
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  valuable company in the United States is a testament to its
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  unwavering commitment to pushing the boundaries of what is
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  possible in space travel. Despite obstacles and setbacks,
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  the firm maintains a significant lead over its competitors in the
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  Space Flight sector, having conducted a record 60 launches
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  using its Falcon 9 rocket in 2022 and deploying thousands of
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  Starlink broadband Internet satellites in orbit.
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  Now looking ahead, though. SpaceX is counting on Starship
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  to deploy its upgraded next generation Starlink satellites.
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  These will serve to meet the burgeoning demand for Spacex's
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  broadband network, further expanding the company's reach
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  and the impact. Starlink, a satellite
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  constellation being constructed by SpaceX, is designed to
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  provide satellite Internet service connectivity to
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  underserved areas on the planet, and as such, it represents yet
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  another example of Spacex's commitment.
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  Using space technology to solve real world problems right here
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  on Earth Now despite Starship not having reached over yet,
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  SpaceX remains optimistic about its future.
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  The company is leveraging the potential of this ambitious
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  project, and in doing so, it's pushing the boundaries of space
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  travel and exploration and as the company navigates the
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  complexities and technological developments.
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  Regulatory hurdles and industry competition.
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  And despite all of these challenges, SpaceX remains
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  optimistic about the future of Starship.
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  The company believes that the rocket has the potential to
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  revolutionize space travel and make it possible for humans to
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  live and work on other planets. Now, this recent stock sale is a
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  sign of confidence in Spacex's future.
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  The company has attracted a large number of investors who
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  believe in its mission and its ability to achieve its goals.
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  Now with this additional capital.
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  SpaceX is well positioned to continue its work on Starship
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  for the foreseeable future. Thank you so much for listening
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  to the show today. I really do appreciate you and I
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  appreciate your time and you spending it here with me on the
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  show. So if you could please hit the
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  subscribe or follow button on whatever podcast platform that
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  you're on right now. And as always, take care of
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  yourselves and each other and I'll see you in the next one.