'Not Accurate': Elon Musk Denies $800 Billion Valuation Bid For SpaceX On 'Strong Cash Flow'

SpaceX CEO Elon Musk has dismissed reports claiming that the space exploration company is raising funds at a $800-billion valuation. Musk took to microblogging platform 'X' (formerly Twitter) and denied the related media reports claiming that the company has 'cash positive' for many years.

“There has been a lot of press claiming SpaceX is raising money at $800B, which is not accurate. SpaceX has been cash flow positive for many years and does periodic stock buybacks twice a year to provide liquidity for employees and investors,” Musk posted on X.

“Valuation increments are a function of progress with Starship and Starlink and securing global direct-to-cell spectrum that greatly increases our addressable market,” added the tech billionaire.

Quoting sources, Bloomberg reported that SpaceX is planning to offer insider shares in a deal that could place the company’s valuation at around $800 billion. The transaction would enable certain investors and staff to realise gains on their holdings.

According to Bloomberg, the specifics discussed by SpaceX’s Board of Directors last week at its Starbase facility in Texas remain subject to change, depending on demand from insider sellers and buyers or other considerations. The sources also claimed that SpaceX is contemplating a potential initial public offering as early as late next year.

The report said that the share price being considered for selling stakes held by employees and investors exceeds $400 each, which would place SpaceX’s valuation between $750 billion and $800 billion.

While the company itself would not be raising new capital through the transaction, a successful sale at these levels would surpass the $500 billion valuation record set by OpenAI in October, the Bloomberg report added.

Musk’s clarifications come amid the speculations of an initial public offering (IPO) by SpaceX in 2026. The company has informed investors and representatives of financial institutions that it plans to launch an IPO in the second half of next year, Reuters reported, quoting the Information.

The rocket-maker is considering a public listing of the entire company, including Starlink, its internet satellite service arm, the Information report added, citing two people familiar with the latest development.

SpaceX is among select companies that can raise funds at $100 billion-plus valuations while delaying or denying any plan to go public, according to a Fortune report.

The idea of spinning off the Starlink business into a separate publicly traded entity was first suggested by its President and Chief Operating Officer, Gwynne Shotwell, in 2020, and speculations are rife about SpaceX making its satellite service arm a public entity. However, the company is yet to make official announcements about its IPO plans.