Elon Musk's SpaceX could become the most valuable startup in the US, following news of its $125 billion valuation
- SpaceX could turn out to be the most valuable startup business in the US, Reuters reported.
- Elon Musk's company could overtake Stripe, which is currently the most valuable startup, per reports.
SpaceX, Elon Musk's rocket manufacturer, could become the most valuable startup in the US, Reuters reported.
It follows news that the California-headquartered company was planning to sell shares to employees at $70 a share, valuing the company at $125 billion, according to media reports on Tuesday.
SpaceX was last valued in October at $100 billion, CNBC reported.
With overall valuation jumping $25 billion between October and May, SpaceX would become the most valuable US startup, sources told Reuters.
If it was valued at $125 billion, the aerospace company, founded in 2002, would leapfrog payments firm Stripe, which had a valuation of $115 billion in a secondary sale, according to Reuters and a Forbes in February.
Despite this jump in valuation, SpaceX would remain behind TikTok parent Bytedance, the world's most valuable startup, which is worth $140 billion, according to data from CB Insights.
SpaceX would still be considered more valuable than Chinese e-commerce startup Shein, worth $100 billion, and Swedish fintech Klarna, worth $45.6 billion, CB Insights data showed.
One source who requested to remain anonymous told Reuters that SpaceX hasn't issued any new shares in the secondary offering, but could do so later this year.
Reuters reported that it was uncertain how many shares the company was offering and whether Musk was a seller.
Musk owned nearly 44% of SpaceX as of August 2021, according to a Federal Communications Commission filing reported by tech blog WCCF Tech. The news comes as the billionaire is trying to buy Twitter.
SpaceX didn't immediately respond to Insider's request for comment.
Musk's company has boomed over the past year, successfully launching and landing its Starship rocket last May, planning to build out its launch site in south Texas, and expanding the reach of its Starlink satellite internet network.