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Elon Musk’s SpaceX Raises $850 Million

To the moon Elon, and Mars.
(Sundry Photography)
(Sundry Photography)
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SpaceX, Elon’ Musk’s rocket company, has raised $850 million in new equity funding, CNBC reports.

Why It Matters: “The latest influx of cash comes as SpaceX simultaneously develops two capital-intensive projects.”

Starlink is the company’s “ambitious project to build an interconnected internet network with thousands of satellites, known in the space industry as a constellation, designed to deliver high-speed internet to consumers anywhere on the planet.”

  • With more than 1,000 satellites already launched, SpaceX has previously estimated Starlink will cost $10 billion and earn as much as $30 billion annually. Musk even plans to spin it off as a separate company eventually.

Starship Rocket represents SpaceX’s other lofty endeavor. “The Starship prototypes are built of stainless steel, with the company aiming to develop a rocket system that is reusable in much the same way as a commercial airliner. SpaceX is developing Starship with the goal of launching cargo and as many as 100 people at a time on missions to the moon and Mars.”

  • SpaceX is “steadily building and testing prototypes” in Texas. It has had success with short-altitude flights, but recently had explosions with higher tests.

A New Valuation: The new equity investment raises SpaceX’s valuation to around $74 billion, around a 60% increase. CNBC also reported that “company insiders and existing investors were able to sell $750 million in a secondary transaction.”

Justin Oh:

I did a full breakdown of Starlink and internet stocks back in October here.

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