SpaceX is reportedly preparing to conduct a tender offer for insider shares that could potentially value the aerospace company at an astonishing $800 billion, surpassing OpenAI’s remarkable valuation of $500 billion set in October. Sources familiar with the discussions, who requested anonymity due to the private nature of the information, indicate that an initial public offering (IPO) might be on the horizon as early as late next year.
The valuation discussions, which took place during a board meeting at SpaceX’s Starbase facility in Texas, remain fluid and could shift based on various factors, including interest from sellers and buyers within the company. Some insiders have suggested that the share price under consideration is over $400, placing SpaceX’s valuation between $750 billion and $800 billion.
If confirmed, this valuation would establish SpaceX as the world’s most valuable private company, a distinction previously held by OpenAI. This represents a significant leap from the company’s earlier valuation of $400 billion, which was set in July when SpaceX raised capital by selling shares at $212 apiece.
The anticipated valuation has also positively affected the stock of EchoStar Corp., a satellite TV and wireless company, which saw its shares rise by up to 18% following the news. This uptick follows EchoStar’s agreements to sell valuable spectrum licenses to SpaceX, a transaction worth $19 billion in total.
SpaceX stands out as a powerhouse in the space industry, notably due to its Falcon 9 rocket, which transports satellites and humans into orbit. The company is also a leader in providing internet services through its Starlink satellite constellation, comprising over 9,000 satellites and significantly outpacing competitors like Amazon’s Project Kuiper.
The company has maintained its position among a select group of firms capable of raising funds at valuations exceeding $100 billion, all while delaying any public listing. If an IPO were to materialize at the projected $800 billion value, SpaceX would rank among the top 20 largest public companies, positioned just below Elon Musk’s electric vehicle company, Tesla Inc.
The transaction would lead to the largest IPO in history, with a hypothetical sale of 5% of the company amounting to $40 billion—well above Saudi Aramco’s record-setting $29 billion IPO in 2019.
However, transitioning to a public company brings its own challenges, primarily the exposure to market volatility that is less pronounced in private enterprises. The performance of various space and defense company IPOs in recent months has been mixed, suggesting that investor sentiments can vary widely.
Executives at SpaceX have previously considered the possibility of spinning off the Starlink division into its own publicly traded entity, an idea initially proposed by President Gwynne Shotwell in 2020. Despite such discussions, Musk has expressed skepticism regarding this avenue, while Chief Financial Officer Bret Johnsen indicated in 2024 that a Starlink IPO remains a long-term objective.
Recent reports also suggest that SpaceX has communicated to investors about its aim for an IPO of the entire company during the latter half of next year. The tender or secondary offering currently in the works would provide a mechanism for employees and early investors to sell shares, offering liquidity typically absent in privately held companies.
As SpaceX continues its ambitious project to develop the Starship, touted as the most powerful rocket to date, it focuses on both launching Starlink satellites and supporting missions to the Moon and, eventually, Mars.
