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SpaceX Valuation Reaches Record of $350 Billion

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Bloomberg Dec 12 04:56 · 28.3k Views

SpaceX and its investors have agreed to purchase as much as $1.25 billion of insider shares in a transaction valuing Elon Musk’s rocket and satellite maker at about $350 billion, according to an internal email seen by Bloomberg. This makes SpaceX the most valuable private startup in the world. Bloomberg's Katie Roof reports.

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  • 00:00 We've been reporting out this valuation for a while, and we get confirmation.
  • 00:03 And in fact, it seems as though a lot of people didn't really want to be setting up their shares.
  • 00:09 That's right.
  • 00:09 Actually, Elon Musk even tweeted a confirmation of this.
  • 00:12 So
  • 00:13 we had reported last week that, you know, they were close to finalizing the $350 billion valuation,
  • 00:21 a world record for a private valuation
  • 00:24 that has now been finalized.
  • 00:27 My colleague Lauren Grush obtained a document confirming
  • 00:30 our scoop.
  • 00:31 And yeah, it's 185
  • 00:33 a share,
  • 00:35 which is a significant uptick from $112 a share that you were talking about just about a month ago.
  • 00:41 All of this optimism is allowing people who've been long term holders of SpaceX to cash out.
  • 00:47 Do we have any idea of who those people are?
  • 00:49 Because as you say, it's SpaceX has been buying back some of the shares, but not as many as they'd anticipated to be able to.
  • 00:55 Sure.
  • 00:56 So,
  • 00:57 you know, it's up 100 billion, you know, from where they were talking a month ago.
  • 01:02 There's been a surplus of
  • 01:04 demand because,
  • 01:06 you know, first of all, Elon's ties to Trump
  • 01:10 and, you know, Trump's election are seen as valuable to some of these shareholders.
  • 01:15 And then also SpaceX had a successful rocket launch
  • 01:19 last month.
  • 01:21 And so both of these things contributed to the perceived value.
  • 01:25 A lot of these private companies aren't necessarily valued based on clear cut metrics, but just where supply meets demand.
  • 01:31 And often, often it's based on a vision for the future.
  • 01:34 But yes, it's apparently they had excess,
  • 01:38 they they didn't have enough sellers and so they had to raise the price to to match supply and demand.