SpaceX CEO Elon Musk on Thursday said that the rocket manufacturing company has no need for additional capital and will instead buy back shares.
What Happened: Musk was responding to media reports that the company has initiated discussions on selling existing shares at a price that values the privately held company at about $200 billion. Bloomberg on Thursday said that the company is considering offering shares at $108 to $110 for the tender offer that may start in June.
“SpaceX has no need for additional capital and will actually be buying back shares,” Musk wrote in response. “We do liquidity rounds for employees and investors every ~6 months,” he added about the periodic tender offers.
Why It Matters: SpaceX obtained a valuation of $180 billion through a tender offer in December, making it among the most valued privately held companies. Publicly-listed aerospace company Boeing Co, in comparison, has a market capitalization of only $114.35 billion as of the last close.
Earlier this week, Musk reiterated his goal of SpaceX taking over 90% of all of Earth's payload to orbit later this year. According to data from analytics firm Bryce Tech, SpaceX launched about 429,125 kgs of spacecraft upmass in Q1 alone, seconded by China Aerospace Science and Technology Corporation (CASC) after launching just 29,426 kgs. SpaceX's American rival United Launch Alliance, meanwhile, launched only 1,285 kgs of spacecraft upmass in the quarter.
Image: Created with artificial intelligence on MidJourney and Official SpaceX Photos on Flickr
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