SpaceX insider share sale values firm at about $800b

SpaceX is conducting an insider share sale that values the company at around US$800 billion.

The Elon Musk-led firm has reportedly set a per-share price of US$421, nearly double the level seen in July.

The company is preparing for a possible IPO in 2026 and is targeting a US$1.5 trillion valuation, which would be the largest public offering to date.

Chief financial officer Bret Johnsen said in an internal memo that the timing and valuation are not final and could change.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

SpaceX logged an estimated $13.1 billion in 2024 revenue 1, up from $8.7 billion in 2023. An ~$800 billion valuation plus reports of a ~$1.5 trillion IPO goal imply over 60 times 2024 revenue. cfo Bret Johnsen told employees in a memo that timing and pricing remain tentative.
Starlink posted $7.7 billion in revenue with 83% growth 2. Gross margin stood at 7% in 2024, with outlook above 25% by 2026 as scale improves 2. Without clarity on profit or free cash flow, investors cannot judge whether the valuation fits Starlink’s margin path or bakes in stretch subscriber gains above the 3.2 million reported in June of that year 3.

Starlink keeps an open peering policy via Internet Exchange Points (IXPs) at Points-of-Presence (PoPs) 4 and now counts 382 peers 5. CDNs and software-as-a-service (SaaS) companies can interconnect. Managed service providers (third-party firms that operate IT and networking for clients) can do the same to cut IP transit spend while trimming latency for remote users, similar to how internet service providers (ISPs) exchange traffic.
Community Gateways sell IP transit to other ISPs at $75,000 per Gbps each month 6, opening options for wholesale buyers and rural networks. Providers in underserved regions can use Starlink as a fiber substitute, as seen with Nauru’s $1.25 million gateway install 6, which suits markets where undersea cables remain too expensive.