Elon Musk denies $800bn SpaceX valuation reports, but stays mum on IPO

Elon Musk debunked a report published by The Information that SpaceX is raising funds at a US$800 billion valuation.

The US$800 billion valuation would have put SpaceX ahead of ChatGPT-parent OpenAI, which is valued at US$500 billion as of October, making it the most valuable privately held company in the world at the moment.

However, Musk wrote on his X.com: “There has been a lot of press claiming @SpaceX is raising money at $800B, which is not accurate.

“SpaceX has been cash flow positive for many years and does periodic stock buybacks twice a year to provide liquidity for employees and investors.”

The South Africa-born Musk, the richest man on the planet with wealth nearing US$400 billion, also clarifies that the National Aeronautics and Space Administration (NASA), for which SpaceX runs various programmes, is not the company’s biggest client.   

“And one other thing that is arguably most significant by far,” Musk added. “While I have great fondness for @NASA, they will constitute less than 5% of our revenue next year.

“Commercial Starlink is by far our largest contributor to revenue. Some people have claimed that SpaceX gets ‘subsidised’ by NASA. This is absolutely false.

“The SpaceX team won the NASA contracts because we offered the best product at the lowest price. BOTH best product AND lowest cost. With regard to astronaut transport, SpaceX is currently the only option that passes NASA safety standards.”

On Friday, The Information reported that SpaceX has informed investors and financial institutions that it plans to pursue an initial public offering (IPO) in the second half of 2026. This would include Starlink, its internet satellite service.

The news of the potential IPO followed a media report that said SpaceX was kicking off a secondary share sale that would value the rocket-maker at $800 billion, The Information reported based on interviews with two people with knowledge of the plan.

Musk had said in 2020 that SpaceX planned to list Starlink several years in the future, once its revenue growth became smooth and predictable.