Elon Musk has pushed back against reports that SpaceX is seeking new funding at an $800 billion valuation. In a recent statement, Musk clarified that the rumors surrounding the valuation are not accurate.
Statement from Elon Musk
Musk stated, “There has been a lot of press claiming @SpaceX is raising money at $800B, which is not accurate.” He further explained that SpaceX has been cash flow positive for many years and conducts periodic stock buybacks twice a year to provide liquidity for employees and investors.
Cash Flow Positive Operations
According to Musk, SpaceX’s cash flow positive operations are a result of its successful business model. The company’s periodic stock buybacks are aimed at giving employees and investors the opportunity to sell shares, rather than raising new capital.
Valuation Drivers
Musk attributed the company’s rising valuation to progress on Starship and Starlink, as well as securing global direct-to-cell spectrum that broadens its potential market. SpaceX has also filed a STARLINK MOBILE trademark for possible mobile network carrier operations. With Starship, the commercial space flight company aims to carry about 99% of Earth’s orbital payload mass once it begins launching multiple times a day.
IPO Timeline
SpaceX, which has remained private for nearly 25 years, has previously indicated a potential IPO target of late 2026. At Tesla’s annual shareholder meeting, Musk suggested taking SpaceX public despite potential drawbacks, stating that he wants Tesla supporters to have the opportunity to own the company’s stock.
Key Points
- SpaceX is not seeking new funding at an $800 billion valuation
- The company has been cash flow positive for many years
- SpaceX conducts periodic stock buybacks to provide liquidity for employees and investors
- The company’s rising valuation is driven by progress on Starship and Starlink, as well as securing global direct-to-cell spectrum
- A potential IPO is targeted for late 2026, but no official announcement has been made.