Bloomberg News

Musk’s SpaceX Denies Blog Report of Capital Raising Plan

August 19, 2014

Elon Musk’s Space Exploration Technologies Corp., the first private rocket maker to deliver cargo to the International Space Station, said it isn’t raising funds from private sources, denying a report of plans to do so.

The TechCrunch blog said yesterday the aerospace company known as SpaceX was seeking “a large secondary investment” of about $200 million, without saying where it got the information. The fundraising push would result in lifting the Hawthorne, California-based company’s value to almost $10 billion, TechCrunch said.

“SpaceX is not currently raising any funding nor has any external valuation of that magnitude or higher been done,” John Taylor, a company spokesman, said in an e-mail. “The source in this report is mistaken.”

Musk, SpaceX’s chief executive officer, plans to ferry astronauts along with cargo within the next few years and in May debuted a reusable version of its Dragon capsule for such missions. The company, which launches commercial satellites, also seeks to win contracts to put U.S. Defense Department satellites into orbit.

SpaceX has a contract from the National Aeronautics and Space Administration for at least 12 missions to resupply the space station, worth $1.6 billion, according to the company’s website.

Musk, who leads Tesla Motors Inc. (TSLA:US) and is the biggest investor in solar power provider SolarCity Corp., founded SpaceX in 2002 and so far hasn’t sold shares of the rocket company to the public. His net worth is $12.2 billion, according to the Bloomberg Billionaires Index.

To contact the reporter on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net

To contact the editors responsible for this story: Jamie Butters at jbutters@bloomberg.net Terje Langeland, Brendan Scott


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