Musk's SpaceX raises $850 million, now valued at $74 billion
Elon Musk's SpaceX has reportedly raised $850 million in an equity funding round last week. CNBC reports the shares were sold at $419.99 apiece. Citing unsubstantiated sources familiar with the financing, the report added that the company is now valued at around $74 billion. Interestingly, the price per share is just a cent lower than the $420 price that Musk made infamous in 2018.
Investors reportedly sold $750 million in a secondary transaction
The latest funding round has increased the company's valuation by around 60 percent. In August, SpaceX had raised $2 billion in funding, marking its valuation to $46 billion. Further, reports suggest that SpaceX's existing investors were able to sell an additional $750 million in a secondary transaction.
Fresh funding will keep SpaceX's Starlink satellite-based internet project going
The influx of $850 million will be used to keep the cash-intensive Starlink and Starship projects going. Starlink is a satellite network project which will provide high-speed internet to customers. With 1,000 satellites in space, a beta program is already underway. SpaceX estimates the project will cost $10 billion to build, but has the potential to earn $30 billion in revenues each year.
Funding will benefit SpaceX's commercial space travel plans as well
SpaceX's other cash-guzzling project is the Starship rocket. The project aims to develop a reusable rocket that can send up to 100 people at a time to the Moon and Mars. Notably, Starship's prototypes have been successfully launched and landed multiple times after short flights. However, just recently two high-altitude prototypes exploded upon landing. SpaceX will attempt another test flight in the coming weeks.
Both projects far from completion, but Musk sees financial viability
Although Starlink has over 10,000 users already, the project will not turn profitable anytime soon. Naturally, critics have called his $30 billion revenue estimate "optimistic". Similarly, the exploding Starships are a long way from readiness for commercial flight as Musk intends. Nevertheless, the maverick CEO has tweeted his plans to announce a Starlink IPO once the revenue streams are steady.
