Elon Musk, the billionaire CEO of SpaceX, has publicly dismissed recent media reports claiming his aerospace company is aiming for a staggering $800 billion valuation through a new share sale. Musk's denial comes a day after speculation suggested such a valuation would make SpaceX the most valuable private firm in the United States, overtaking artificial intelligence leader OpenAI.
Setting the Record Straight on Funding and Valuation
Addressing the claims directly on his social media platform, Musk stated that press reports about SpaceX raising capital at an $800 billion valuation are inaccurate. He provided crucial insights into the company's financial health and strategy. SpaceX has been cash flow positive for several years and conducts periodic stock buybacks twice annually to offer liquidity to its employees and investors.
Musk explained that any increases in the company's valuation are directly linked to tangible progress in its flagship projects. The key drivers he highlighted are advancements with the next-generation Starship rocket system, the growth and commercial success of the Starlink satellite internet constellation, and the recent achievement of securing global direct-to-cell spectrum access. This spectrum is pivotal as it significantly expands the potential market for Starlink's services.
NASA Contracts: Best Product, Lowest Price, No Subsidy
In a separate clarification, Musk strongly refuted narratives suggesting SpaceX is subsidised by NASA. He labelled such claims as "absolutely false." Musk expressed admiration for the space agency but pointed out that NASA will account for less than 5% of SpaceX's total revenue next year. The dominant revenue contributor is the commercial Starlink business.
He emphasised that the SpaceX team secured NASA contracts, including those under the vital Commercial Crew Program, purely on a competitive basis. "We offered the best product at the lowest price. BOTH best product AND lowest cost," Musk stated. He further noted that for astronaut transport to the International Space Station (ISS), SpaceX's Crew Dragon spacecraft currently stands as the only option that meets NASA's rigorous safety standards.
Collaboration and the Road Ahead
The partnership between NASA and SpaceX for the Commercial Crew Program remains a cornerstone of American human spaceflight. This collaboration utilises SpaceX's Falcon 9 rockets and Crew Dragon capsules to ferry astronauts to and from the ISS. Musk's statements aim to underscore that this relationship is built on performance and value, not favouritism or financial aid.
The focus for SpaceX now clearly remains on executing its ambitious goals: making Starship operational, scaling Starlink's global connectivity, and leveraging new technologies like direct-to-cell service. The company's financial strategy, as outlined by Musk, relies on internal cash generation and structured liquidity events rather than fundraising at speculative, sky-high valuations.
