A unit of Saudi Arabia's investment fund and an Abu Dhabi-based company are both planning to invest in a funding round for SpaceX worth $14 billion. This is much bigger than the previous amount raised by the company for the past few years.
(Photo : JIM WATSON/AFP via Getty Images)
TOPSHOT - The SpaceX Falcon Heavy rests on Pad 39A at the Kennedy Space Center in Florida, on February 5, 2018, ahead of its demonstration mission. SpaceX is poised for the first test launch February 6 of its Falcon Heavy, which aims to become the world's most powerful rocket in operation, capable of ferrying people to the Moon or Mars some day.
Investing to SpaceX
SpaceX may receive an investment from two entities in South Western Asia, including a company based in Abu Dhabi and a unit of Saudi Arabia's investment fund. Reuters reported that both are planning to invest in a multi-billion dollar funding round for the company at about $140 million.
As per SpaceX and Morgan Stanley's representative, Badeel, which is Saudi Arabia's Water and Electricity Holding Company and part of the country's sovereign wealth fund, and United Arab Emirates Alpha Dhabi will be included in the funding round.
Compared to the funding rounds from the previous years, this amount is much bigger than that and it would make them one of the largest private companies in the world by valuation. According to venture capital Space Capital, the company only raised $2 billion in 2022 while $2.6 billion in 2020.
Leading the Company
Seeing the investment developing within different companies is interesting in the wider context of SpaceX's ties to the United States government. Despite this, it is hard to imagine a citation where Chief Executive Officer Elon Musk gave up control of his own space company.
Especially since his attention has heavily relied on Twitter in recent months after acquiring the platform last November. Musk now only owns 40% of SpaceX in equity shares, as per Wall Street Journal, but he also owns 80% in voting shares.
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Orbital Test Flight
SpaceX is expecting a lot this year to be equally eventful, and this investment funding may be part of that anticipation. Last month, SpaceX Chief Executive Officer Elon Musk noted that the company's largest rocket to date, Starship, would hold its orbital launch attempt soon. Starship has the potential to change the industry due to its reusability.
Interesting Engineering reported that the company is close to performing the first orbital test flight of its Mars rocket and plans to eventually reach Mars with its fully reusable spacecraft. Despite this, it will likely require a lot of trial and error.
In fact, Musk stated that Starship has a 50% chance of reaching its first try. This will also help launch Starlink 2.0 satellites to orbit in order for it to help boost its profits. The CEO added that it is likely to launch in April, however, it will depend on the clearance of the Federal Aviation Authority.
Meanwhile, the company's Starlink satellite internet business is also growing. As per Teslarati, the internet service hit over 1 million active subscribers worldwide in late December. This has been expanded to different counties, hence the subscriber growth.
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