SpaceX's valuation will skyrocket to $127 billion after latest funding round: Report

The Elon Musk-led aerospace company SpaceX is aiming to boost its valuation through a new round of funding. According to CNBC's report, the California-based firm has plans to raise approximately $1.7 billion by selling its shares which would skyrocket the company's total net worth to $127 billion. According to a company-wide email, SpaceX will sell its shares at a price of $70, which is 25% higher than the previous price of $56 after a 10-1 stock split in February.

Notably, SpaceX, which recently completed 20 years, entered the $100 billion club and is currently the second most valuable startup in the US. The company was established in 2002 by Musk with an intention to build reusable rockets which would reduce the launch costs allowing frequent space travel. As for its market capitalisation, SpaceX had raised around $755 million after its new and existing investors agreed to sell their shares at a price of $560. Following this round, the rocket-making firm's valuation rose from $74 billion to $100.3 billion earlier this year.

Notably, capital-intensive projects such as the giant Starship rocket and global satellite internet provider Starlink have been the two biggest reasons for SpaceX's soaring valuation. Notably, SpaceX is not a publicly listed company so the trading is conducted among the insider stake owners, with Musk having the majority share around 45%. 

SpaceX raising money for Elon Musk's Twitter purchase?

Recently, several reports surfaced suggesting that SpaceX is raising money to fund its CEO Musk's bid to purchase social media site Twitter. Earlier in April, the billionaire had made an offer to buy the platform for $44 billion, a deal which is on hold and is yet to fructify. Citing The New York Post, Republic Media Network had earlier reported that Musk is having trouble raising the amount to close his deal with Twitter. However, the billionaire had said that the reason for the deal being on hold is the issue of rampant fake and spam accounts on Twitter.

A recent report by Morgan Stanley has predicted that SpaceX might help Musk become the world's first trillionaire. On the other hand, Tesla, which is an electric car manufacturer and the world's most valuable car company would also highly contribute to Musk's inflating wealth. Meanwhile, SpaceX and Musk are embroiled in a controversy after a former company employee accused the billionaire of sexual misconduct. The employee also alleged to have received $2,50,000 in order to bury the issue, allegations which were denied by Musk. 

Image: AP