SpaceX will become the second largest private company in the world


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Not a day goes by that Elon Musk doesn’t make headlines, especially in recent weeks. His space venture called SpaceX (SPACE) is seeking to bring in up to $1.7 billion in new capital, priced at $70 per share, according to a company-wide email obtained by CNBC. Who would be increase its valuation at $127 billion, making it the world’s second-biggest startup behind China’s Bytedance, which owns popular video-sharing app Tiktok.

A bigger picture: Shares of Private SpaceX (SPACE) were last valued at $56 per share in February after a 10-to-1 split. The new $70 valuation would represent a 25% increase in the stock price, as the company is working on two capital-intensive projects. It’s the next-generation Starship rocket that hopes to take the first humans to Mars, while its Starlink Global Satellite Internet Network (STRLK) has recently made headlines after being deployed in Ukraine.

SpaceX (SPACE) is also making a secondary sale to company insiders and existing shareholders for up to $750 million in common stock. Remember that Elon Musk had also raised significant capital to fund his takeover of Twitter, before saying he couldn’t move forward until there was “transparency about bots and fake accounts “. Meanwhile, Tesla shares have lost nearly half their market value after falling from an all-time high of $1,243 in November.

Ready for take off: The space industry is on track to hit $1,000,000 in revenue by 2040, according to Citigroup, after hitting $424 billion in 2020 and growing 70% since 2010.” Basically, with the new generation of space driven by the commercial sector, the launch industry is undergoing a secular evolution from cost-plus pricing to a value-based approach in order to open up new markets and maximize profitability. Launch market had a limited number of government-backed companies that were more with military capability and creating revenue and jobs than increasing operational efficiency.”

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