On May 17, according to people familiar with the matter, Elon Musk, the founder of SpaceX, may be seeking to sell some of his shares in the Rocket Company to help raise funds for the acquisition of twitter People familiar with the matter said that SpaceX plans to sell its existing shares to selected buyers from Tuesday local time, and there is speculation that musk is the seller.
Recently, musk has been trying to raise more funds for its $44 billion acquisition of twitter. People familiar with the matter speculated that he might sell his shares in SpaceX to get cash. According to the regulatory filing documents, musk held 44% of SpaceX as of August 2021.
According to people familiar with the private placement industry, SpaceX is selling existing shares rather than issuing new shares. The company's most recent financing was last December, when it was valued at $100 billion.
However, people familiar with the matter said that SpaceX would seek to sell at a price of $70 per share, up 25% from the previous round of financing, equivalent to a valuation of about $125 billion.
SpaceX has conducted several successful launches in recent months. So far this year, the company has carried out 19 rocket launches, including two consecutive satellite launches in 24 hours. SpaceX also said that it would defeat the United States (NASA) to achieve manned landing on Mars by 2030.
Meanwhile, musk has been raising more money for the acquisition of twitter. According to banking sources, he is negotiating with private equity companies including Apollo global management and hedge funds, hoping to raise $2 billion to $4 billion through preferred stock financing to replace his margin loan with Tesla shares as collateral, and even replace the arranged primary financing from Morgan Stanley.
Morgan Stanley has promised to lend musk $3 billion in debt financing for the acquisition of twitter, but the latter needs to bear up to 12% interest, the banking insider said.
Musk recently questioned the false user numbers reported by twitter, which will not make debt financing easier. Instead, the banker said: "since musk questions Twitter's user data, the bonds will be harder to sell. Musk is undermining Twitter's financial position." On Monday afternoon, musk said it was not impossible to buy twitter at a lower price.
Tesla's share price has been hit hard since musk announced its acquisition of twitter last month. The stock closed at US $724.37 on Monday local time. When the deal was announced on April 25, Tesla's share price was still hovering around $1000.