Elon Musk’s rocket and satellite company, SpaceX stocks has reportedly raised another $850 million, sending its valuation soaring to about $74 billion.
SpaceX stocks raised at a price of $419.99 per share, CNBC reported, citing people familiar with the financing. That’s just shy of the $420 mark at which Musk in 2018 said he had the “funding secured” to take Tesla private; the Securities and Exchange Commission alleged it was a reference to weed. The valuation of Elon Musk’s SpaceX stocks has skyrocketed to $100 billion following a secondary-share sale last week, CNBC reported.
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SpaceX stocks raised only a portion of the funding available in the marketplace, with one person telling CNBC that the company received “insane demand” of about $6 billion in offers over the course of just three days.
The latest round also represents a jump of about 60% in the company’s valuation from its previous round in August, when SpaceX stocks raised near $2 billion at a $46 billion valuation.
The jump in SpaceX stocks valuation represents another victory for Musk, whose electric car-company, Tesla, has soared by about 350% in value over the past year. SpaceX stocks has made the outspoken entrepreneur one of the richest people in the world.
Elon Musk, SpaceX’s CEO, is also reportedly raising another private round of SpaceX stocks funding to continue its Starship developments. To do so, he will be selling over 1 million of his own shares to raise an extra $250M.
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As such, SpaceX stocks on-paper wealth has multiplied to a hundred times over the $1 billion unicorn mark, making it a “centicorn,” if you will. SpaceX is now the world’s second most-valuable privately held company, behind only China’s supermassive internet juggernaut Bytedance, according to data from business analytics firm CB Insights.
The Hawthorne, California-based company launches satellites into orbit and transports astronauts to and from the International Space Station. But two other ventures have required aggressive fundraising lately, with February’s deal alone generating $1.2 billion.
What is the profitable Advantage of SpaceX stocks?
SpaceX can potentially be a very profitable company since first and foremost it focuses on reusable rockets. SpaceX has a lot of real-world commercial contracts right now, the US Space Force said that it would permit SpaceX to fly reused (or as SpaceX prefers, “flight-proven”) Falcon 9 rockets to launch the government’s next two government GPS III satellites.
Since SpaceX had agreed to launch these government GPS spacecraft for about $97 million in capital each. But in return for being permitted to fly reusable rockets, SpaceX now reported that it can cut the price it charges Space Force for the next two launches by a total of $52.7 million capital saving of more than $26 million capital each.
You might wonder how SpaceX stocks competes internationally, well if SpaceX can launch commercial payloads for $56 million each, then ULA wouldn’t be able to compete, so they definitely kicked out of the competition. Now the $56 million is more expensive than the reported $50 million costs of the expendable India PSLV competitor rocket which is probably the cheapest rocket vehicle in the side of China.
However, the PSLV only has a limited payload capacity of about 1.8 metric tonnes which is less than a tenth of the Falcon 9 22.8 metric tonnes pay-load. So it’s clear no one on earth is capable of launching payload as cheap as SpaceX’s deal, giving SpaceX stocks a unique competitive advantage in the space industry.
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SpaceX is one of the world’s fastest-growing launch services providers, and it already secured over 100 missions, and SpaceX stocks representing over $12 billion on contract. These include commercial satellite launches as well as US government missions. SpaceX has developed 3 launch vehicles, and it employs 9,500 people in its development, manufacturing, and launch facilities.
SpaceX’s Dragon spacecraft became the first commercial spacecraft to deliver cargo to and from the International Space Station in 2012. SpaceX has been awarded a contract by NASA to develop lunar landers that astronauts can use to land on the moon.
Since many of its investors, including Google, NASA, and Bank of America, will want a significant return on investment, SpaceX stocks will likely go public with higher numbers.
How to buy SpaceX stocks?
Since it’s not possible to buy SpaceX stocks from the stock market, there are other possibilities for investors to invest in SpaceX stocks pre-IPO.
Some platforms allow investors to invest in pre-IPO companies. Like EquityZen and Forge Global, such platforms enable existing stock option holders to sell their options to investors willing to meet their price demands.
It is the only private company capable of returning a spacecraft from low Earth orbit. It is therefore expected that investors are becoming more and more interested in how to purchase SpaceX stocks.
Elon Musk unveiled SpaceX’s new Starship plans for private trips to the Moon, Mars, and beyond. The new version of Starship (and its Super Heavy booster) will carry up to 100 people to the moon, Mars, or other destinations in space or around Earth, Elon Musk said. It will stand 387 feet (118 meters) tall and be completely reusable, with quick turnarounds;
Starlink is the most valuable piece of SpaceX, according to Morgan Stanley analyst Adam Jonas. In June 2020, he estimated the value of different pieces of SpaceX stocks, back when its valuation was closer to $50 billion, saying Starlink was worth $42 billion.
First is its Starlink satellites, which provide internet service from 1,650satellites floating in orbit. Launched in 2019, it now has over 100,000 users using its beta version thanks to its faster than expected internet speeds, which hit around 175 Mbps.
In addition to SpaceX stocks further building a war chest for its ambitious plans, company insiders and existing investors were able to sell $750 million in a secondary transaction, one of the people said.
Starlink is its ambitious project to build an interconnected internet network with thousands of satellites, known in the space industry as a constellation, designed to deliver high-speed internet to consumers anywhere on the planet. SpaceX leadership has previously estimated Starlink will cost about $10 billion worth of SpaceX stocks or more to build but believes that the network could bring in as much as $30 billion a year — or more than 10 times the annual revenue of its existing rocket business.
The company disclosed in an Federal Communications Commission filing last week that Starlink has “over 10,000 users in the United States and abroad,” in just over three months since the public beta began.
The Starship prototypes are built of stainless steel, with the company aiming to develop a rocket system that is reusable in much the same way as a commercial airliner. SpaceX is developing Starship with the goal of launching cargo and as many as 100 people at a time on missions to the moon and Mars.