Billionaire Elon Musk is making headlines almost every day since a while now for varied reasons be it for Tesla becoming the most valued automaker or him becoming the world’s seventh-richest person.
Recently, the news about SpaceX got the magnate trending almost instantly. Reportedly, Elon Musk’s SpaceX is in discussions to raise new money at a valuation of about USD 44 billion. The company is in talks with investors to raise about USD 1 billion at a price of USD270 a share.
Sources cite that the round will value the firm at USD 44 billion, before any new capital intake. However, the decision is not concrete as the funding cannot be completed for the next couple of months, and there lies the possibility in a change of terms. At this evaluation of USD 44 billion, SpaceX will become one of the most valuable venture-backed US firms.
Morgan Stanley said the company could potentially be worth up to USD 175 billion in a research report of 20 July. The said it remains concentrated on the needs and capital sources of SpaceX as a possible catalyst for growing public investors' space value.
As per Morgan Stanley, SpaceX raised around USD 3.5 billion to date and forecasts that it will consume approximately USD 50 billion of free cash flow between 2019 and 2032 before its cash generation from its satellite internet business Starlink in 2033.
Investors in SpaceX include Google, Fidelity, Baillie Gifford, Peter Thiel’s Founders Fund, and Valor Equity Partners.
In 2002, Musk founded SpaceX to seek human livability on other planets. The National Aeronautics and Space Administration (NASA) has been a key partner and customer for the company.
In May, two U.S. astronauts entered a SpaceX spacecraft and marked the first time that humans began circling in a commercial craft. Both will return on the 2nd of August.