Please ensure Javascript is enabled for purposes of website accessibility

SpaceX Raises Fresh Cash at Reported $45 Billion Valuation

By Lou Whiteman – Aug 19, 2020 at 9:58AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company is riding a wave of momentum after hitting a milestone for NASA.

SpaceX has raised $2 billion in fresh capital at a valuation of about $45 billion, as the space company backed by Tesla's Elon Musk capitalized on strong investor interest after completing a significant milestone for NASA earlier this summer.

In a regulatory filing, the privately held company said it sold $1.9 billion in new shares in an offering that commenced on Aug. 4, with plans to sell an additional $165 million in equity and preferred stock in the weeks to come.

SpaceX Falcon 9 rocket launches from Kennedy Complex 39A.

Image source: SpaceX.

Terms of the deal were not disclosed in the filing, but Bloomberg reported last week that the offering would value SpaceX equity at close to $46 billion. By comparison, space-focused defense contractor Northrop Grumman is valued by the markets at $56 billion.

SpaceX has been on a roll of late. The company launched its first-ever crewed flight for NASA, the first astronaut launch from American soil since 2011, and earlier this month split a massive launch contract with the United Launch Alliance, a joint venture of Lockheed Martin and Boeing.

The company is also working to build out its Starlink satellite internet service and continues development toward Musk's eventual goal to transport people to Mars.

SpaceX officials have expressed little desire to go public, and as long as investors continue to have an appetite for its private offerings, there is no need for a company with such a long-range focus to go public and report quarterly results.

Investors could eventually have a chance to buy into Starlink, however, as some analysts have suggested SpaceX could eventually spin it off to help fund its other activities.

Lou Whiteman owns shares of Lockheed Martin. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla Stock Quote
$182.92 (0.03%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.