SpaceX's Valuation Soars to $350 Billion

Elon Musk's space company SpaceX has reached a new valuation milestone of $350 billion following a secondary stock sale. The company and investors have agreed to purchase a total of $1.25 billion worth of insider shares at a price of $185 per share. This transaction does not involve new capital raising and is characterized as a secondary sale of existing shares.

In a move demonstrating its financial strength, SpaceX itself is participating in the buyback program, purchasing up to $500 million in common stock. These secondary rounds, which occur roughly twice a year, provide employees and other shareholders the opportunity to cash out their holdings. This latest valuation marks a significant increase of 67% from the company's previous peak valuation of $210 billion achieved in June.

The increase in SpaceX's valuation reflects its continuous expansion and dominance in the space industry, particularly as it maintains an almost monopolistic position in the U.S. satellite launch market. While competitors lag in operationalizing their rockets, the company's Falcon rockets have become the standard for satellite launches.

Another key factor contributing to SpaceX's growth is its Starlink satellite internet service, which claims to have approximately 7,000 satellites deployed and around 5 million subscribers. This service is considered a central economic pillar for the company.

SpaceX's new valuation will place it among the top 25 companies in the S&P 500. When contacted by CNBC, SpaceX did not immediately comment on the share sale process. The news of the share price being set at $185 was first reported by Bloomberg.