KEY TAKEAWAYS

  • SpaceX is in discussions for a tender offer that could elevate its valuation to around $350 billion.
  • This increase significantly boosts Elon Musk’s net worth.
  • Company CEO Elon Musk has said SpaceX stays private to keep control over its ambitious space projects without pressure from public shareholders.

SpaceX’s Recent Tender Offer and Valuation Surge

In December 2024, reports emerged that SpaceX is negotiating a tender offer to sell insider shares, which would value the company at about $350 billion. This is a massive 67% increase from its previous valuation of $210 billion six months ago. If finalized, this valuation would position SpaceX as a prime candidate for a lucrative initial public offering, a move that Musk has repeatedly ruled out.

How SpaceX Makes Money

SpaceX makes money through three main channels: commercial satellite launches, NASA cargo missions, and its Starlink internet service. SpaceX may get a third of its money from government contracts, but it operates like a tech company—constantly testing and improving to cut costs.

Using reusable rockets like the Falcon 9 and Dragon spacecraft, the company has slashed launch costs from hundreds of millions to a fraction of that—around $60 million to $70 million per mission. In addition, its rapidly expanding Starlink service has increased from about 1 million subscribers at the end of 2022 to more than 4 million in 2024.

Impact on Elon Musk’s Net Worth

Elon Musk, who owns an estimated 42% stake in SpaceX, has seen his net worth increase substantially with the company’s rising valuation. The recent valuation adds about $40 billion to his wealth, offsetting losses from other ventures and reinforcing his position as the world’s richest individual—a staggering $344 billion (as of December 2024).

The Bottom Line

SpaceX’s potential $350 billion valuation reflects more than just its rocket launches and satellite internet. The figure signals how space technology—once the domain of government agencies—has become big business. As SpaceX pushes ahead with Mars missions and expands Starlink’s reach, it’s reshaping what private companies can achieve in space.