Musk’s rocket and satellite maker, SpaceX preps for insider share sale at $400B valuation

Elon Musk’s space company, SpaceX, is expected to soon hold a valuation of $400B, 14% more than in December. The Musk-led rocket and satellite maker appears to be looking to cash in on investor confidence as part of its insider share sale. 

Elon Musk’s private aerospace juggernaut is expected to embark on an insider share sale that would value the company at roughly $400B, according to sources cited by Bloomberg.

The jump to the $400B valuation is remarkable because SpaceX was pegged at $350B in its most recent share sale in December, and $210B just six months before that. The $400B valuation would also solidify the company’s status as the world’s most valuable private startup.

SpaceX insider shares sale valued at $400B

In the current deal, insiders can sell at $212 per share, up from the $185 price set in December. The offering is focused on employees and related insiders and involves approximately $1B worth of shares being put on the table.

At this proposed valuation, SpaceX would rank among the most valuable companies in the S&P 500, ranking above giants such as Bank of America, Procter & Gamble, and many of its public aerospace competitors.

The mechanics of SpaceX’s insider sales have drawn some scrutiny from well-connected private equity players, including Antonio Gracias and others. They have used special-purpose vehicles (SPVs) to channel investor interest, which also raised issues about preferential access and limited visibility, given the company’s private status.

Investor confidence in Musk’s satellite maker is high

Analysts stated that factors like Starlink’s explosive growth, SpaceX’s powerful market position, and robust financial backing are driving investor confidence in the company.

The company also has a loyal base of early investors. A handful of Musk associates have previously orchestrated private share sales, including a billion-dollar deal involving both SpaceX and his AI company xAI.

The satellite internet division has amassed over six million subscribers, and its 2024 revenues neared $2.7B that is now a major contributor to SpaceX’s projected $16B in its 2025 revenue.

SpaceX now handles over half of global satellite launches and leads in government and national‑security contracts, including its Starshield division. The company holds more than $3B in cash, sparing it the need for dilutive capital raises.

The $400B valuation doesn’t come without its challenges. The Starship rocket program, which is central to Musk’s ambitions for Mars colonization, has faced a series of setbacks, such as the major explosion at the Texas test site just last month. If Starship doesn’t become fully operational, SpaceX may struggle to shift entirely onto what it’s reusable, cost-cutting launch system.