Topline
Elon Musk’s commercial rocket company SpaceX has raised $750 million in its latest funding round at a valuation of $137 billion, according to CNBC, at a tumultuous time for the billionaire founder who lost the title of the world richest person last month amid Tesla’s share price drop and upheaval at Twitter.
A SpaceX Falcon 9 rocket launches with the Surface Water and Ocean Topography (SWOT) spacecraft … [+]
Key Facts
According to CNBC, the latest funding round is believed to be led by the venture capital firm Andreessen Horowitz—who also invested in Musk’s $44 billion buyout of Twitter.
The reported valuation of $137 billion is also an increase from the $127 billion that SpaceX was valued at in May 2022, when it raised around $1.7 billion.
The latest funding round comes after a busy 2022 for SpaceX, which carried out 61 launches of its Falcon reusable rockets while its satellite internet service crossed 1 million subscribers.
News Peg
In November, Reuters reported SpaceX was planning to allow insiders to offer their shares for sale in the secondary market at a valuation of up to $150 billion. A month later, Bloomberg reported that the company had settled at a slightly lower $140 billion valuation, or $77 per share.
Forbes Valuation
According to our estimates, Musk’s net worth stands at $146.5 billion, a nearly 55% decline from a peak of $320 billion in November 2021. The slump has been driven by the poor performance of Tesla’s stock in the past year. In December, Musk’s run as the world’s richest person ended as he was overtaken by Bernard Arnault, CEO of luxury goods conglomerate LVMH.
Key Background
Musk has been embroiled in several controversies over the past year, many of which have stemmed from his late October acquisition of Twitter. In his effort to turn the social media platform into a “free speech” haven, Musk has relied on unscientific polls to reinstate controversial accounts and make arbitrary policy and rule changes. While serving as Twitter CEO, Musk has embraced several right wing talking points and conspiracy theories while targeting people he dislikes. Tesla investors have blamed Musk’s Twitter controversies as one of the reasons behind the slide in the electric carmaker’s stock. Musk’s handling of Twitter has also caused concerns about SpaceX, with NASA Administrator Bill Nelson asking the company’s COO Gwynne Shotwell about the impact of the “distraction that Elon might have on Twitter.” Shotwell, however, told Nelson there was “nothing to worry about.” Last month, Musk said he would step down as Twitter CEO after finding a replacement.
Further Reading
SpaceX raising $750 million at a $137 billion valuation, investors include Andreessen-Horowitz (CNBC)
SpaceX mulling secondary share sale at $150 billion valuation -sources (Reuters)
Source: https://www.forbes.com/sites/siladityaray/2023/01/03/spacex-reportedly-raises-750-million-in-fresh-funding-at-137-billion-valuation/