SpaceX Plans to raise $1.7 Billion in New Funding

According to CNBC, SpaceX is raising a significant amount of new money, valuing the private business at over $127 billion. According to a company-wide email received by CNBC on Friday, the space enterprise is aiming to raise up to $1.725 billion in additional financing at a price of $70 per share. In February,  divided its stock price 10-for-1, lowering the common shares to $56 per share — a 25% rise in value.

SpaceX is also selling up to $750 million in common shares to business insiders and current shareholders in a secondary sale. Given that has remained private for more than 20 years, the business performs these secondary sales on a regular basis as a mechanism for long-term owners to sell equity.

The amount of financial inflow was not previously disclosed. The New York Post was the first to disclose that SpaceX was searching for new cash, quoting anonymous sources as saying that the capital increase had so far received “tepid demand.” stock has risen dramatically in recent years as the firm has raised billions to support two capital-intensive projects: the next-generation Starship rocket and its worldwide satellite broadband network Starlink.

The company’s investment round comes as Elon Musk, the company’s creator and CEO, is accused of sexual harassment by a former SpaceX flight attendant. The billionaire has dismissed the allegations as “false charges.” According to reports, the flight attendant did not sue SpaceX and instead settled for a $250,000 severance package in 2018.