American billionaire Elon Musk’s company, SpaceX, is negotiating the sale of insider shares, which could increase its value to $255 billion.
Bloomberg writes about it.
This is a significant increase in the company’s price compared to the $210 billion it was valued at back in June 2024. It will also strengthen SpaceX’s status as the most expensive private company in the United States.
SpaceX’s new valuation will be a record for an American private company. However, it will still be lower than the valuation of TikTok’s Chinese parent company ByteDance, which was at $268 billion in December 2023. SpaceX is already on par with some of the world’s largest public companies in market capitalization.
The secondary market, where employees and some shareholders who bought shares earlier can sell them, gives investors in the privately held SpaceX a new way to capitalize on Elon Musk’s strong ties to U.S. President-elect Donald Trump.
After the November 5 presidential election, shares of electric car manufacturer Tesla, Musk’s only publicly traded company, jumped 26%, adding $200 billion to its market capitalization.
There is a difference between public and private companies. Public companies have shares that can be bought or sold on the stock exchange and must report publicly on their activities. Whereas private companies do not trade their shares on the open market, their owners are a limited number of people or organizations, and there are fewer disclosure requirements.