Elon Musk: No, SpaceX is Not Looking to Double Valuation Despite Starship and Starlink Programs Accelerating

Urian B., Tech Times 17 December 2020, 12:12 am

Elon Musk recently claimed that a certain report was incorrect. The report noted that SpaceX is looking at doubling its valuation as both the Starship and Starlink programs accelerate. The billionaire simply replied that this is not true.

Does SpaceX make money?

The report was made by Teslarati and it noted that Business Insider first reported that the company is now working hard for it to secure yet another massive round of funding on the main promise of both Starlink and Starship in just a few months after already raising almost $2 billion. Aside from this raising a huge amount of capital, SpaceX's main goal is to be able to double its current valuation from a whopping $46 billion all the way up to $92 billion.

In the entire history of these "unicorn" startups that are generally referring to the primarily venture capital-funded type of private technology companies that are worth over $1 billion, doubling its valuation with just a single funding round is very rare. This is extremely rare in a few of the private startups that are worth reportedly over $10 billion. Typically, in these large unicorns, nothing short of the said highly successful stock market IPO will be capable of doubling the company's own valuation.

Is SpaceX profitable 2020?

In SpaceX's very own prolific fundraising history noted by Crafts, the company has said to occasionally pull off a few similar feats. In 2015, a funding round led by both Google and Fidelity, SpaceX's own valuation then exploded a massive tenfold coming from $1 billion up to $10 billion. Closed back in 2017, the company's very next funding round then again pulled off a valuation multiplication. The company lept from 10.1 billion up to $21.3 billion. However, out of the seven additional rounds that were completed ever since, it would then range from $214 million up to $1.9 billion. SpaceX's valuation was unable to jump over 28% since then.

In the world of private startup valuation, SpaceX could most technically sell just a single share for $500 which is twice the current price of around $250 resulting in retroactively raising the prices of all of its outstanding shares. This would then double an already huge valuation on the low-volume equity sale which would not exactly inspire the company's confidence. However, SpaceX still has no obvious reasons for it not to go for more with its massive $1.9 billion Series N windfall about only four months ago.

SpaceX stock

Elon Musk, however, has Tweeted in response to the report on Twitter saying that it is incorrect. This could mean that the company is technically not focused on doubling its valuation as Elon Musk has been very blunt about him not focusing on the money at all but rather on the ultimate goals of his companies. However, Elon Musk's Tweet can still be interpreted otherwise and the official explanation of the billionaire has to clarify which is incorrect.