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SpaceX share sale expected to back $400 billion valuation

The new SpaceX valuation would represent yet another record-high as far as privately-held companies in the U.S. go.

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A new report this week suggests that Elon Musk-led rocket company SpaceX is considering an insider share sale that would value the company at $400 billion.

SpaceX is set to launch a primary fundraising round and sell a small number of new shares to investors, according to the report from Bloomberg, which cited people familiar with the matter who asked to remain anonymous due to the information not yet being public. Additionally, the company would sell shares from employees and early investors in a follow-up round, while the primary round would determine the price for the secondary round.

The valuation would represent the largest in history from a privately-owned company in the U.S., surpassing SpaceX’s previous record of $350 billion after a share buyback in December. Rivaling company valuations include ByteDance, the parent company of TikTok, as well as OpenAI.

Bloomberg went on to say that a SpaceX representative didn’t respond to a request for comment at the time of publishing. The publication also notes that the details of such a deal could still change, especially depending on interest from the insider sellers and share buyers.

READ MORE ON SPACEX: SpaceX to decommission Dragon spacecraft in response to Pres. Trump war of words with Elon Musk

SpaceX’s valuation comes from a few different key factors, especially including the continued expansion of the company’s Starlink satellite internet company. According to the report, Starlink accounts for over half of the company’s yearly revenue. Meanwhile, the company produced its 10 millionth Starlink kit last month.

The company also continues to develop its Starship reusable rocket program, despite the company experiencing an explosion of the rocket on the test stand in Texas last month.

The company has also launched payloads for a number of companies and government contracts. In recent weeks, SpaceX launched Axiom’s Ax-4 mission, sending four astronauts to the International Space Station (ISS) for a 14-day stay to work on around 60 scientific experiments. The mission was launched using the SpaceX Falcon 9 rocket and a new Crew Dragon capsule, while the research is expected to span a range of fields including biology, material and physical sciences, and demonstrations of specialized technology.

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SpaceX secures FAA approval for 25 annual Starship launches

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla Robotaxi gets shade thrown on it by ex-Waymo CEO

“If they were striving to re-create today’s Bay Area Uber experience, looks like they’ve absolutely nailed it.”

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Credit: @AdanGuajardo/X

Tesla Robotaxi is getting more shade thrown on it by skeptics from all corners of the industry. Recently, it received some criticism from ex-Waymo CEO John Krafcik, who led the currently sits on the board of Tesla rival Rivian.

Robotaxi is Tesla’s self-driving ride-hailing service that operates in both Austin, Texas, and the San Francisco Bay Area.

In Austin, it launched on June 22, and it was the first city where Tesla launched driverless rides to a select group of invited guests. That group, as well as the geofence in Austin, has expanded several times in the roughly two months since its launch.

In the Bay, Tesla is not legally allowed to call the platform “Robotaxi,” so it refers to it as its ride-hailing service. This was confirmed by CEO Elon Musk.

However, Krafcik, who was with Waymo for about seven years, is skeptical of the Robotaxi fleet, basically calling it less than impressive and stating that it is a lot like Uber in San Francisco.

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In an interview with Business Insider, Krafcik revealed his true thoughts about Tesla’s efforts:

“If they were striving to re-create today’s Bay Area Uber experience, looks like they’ve absolutely nailed it.”

He went on to say that the company’s decision to keep Safety Monitors in the vehicle for the time being makes the vehicle not a Robotaxi. In Austin, there is not a Safety Monitor in the driver’s seat, only in the front passenger’s seat.

In the Bay Area, there is a Safety Monitor in the driver’s seat, which is a regulatory requirement with the platform currently.

Krafcik continued:

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“Please let me know when Tesla launches a robotaxi — I’m still waiting. It’s (rather obviously) not a robotaxi if there’s an employee inside the car.”

The presence of a Safety Monitor is only a measure of precaution currently, and Tesla has said that it is purely a move to ensure riders are kept out of danger.

Musk said recently that Tesla is being “paranoid” over safety, and for good reason. Any instance of an accident could set Tesla, or any self-driving program for that matter, back years.

Unfortunately, Krafcik said he has no desire to try Robotaxi, so it won’t get a fair shot at changing his mind.

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Comprehensive Tesla Model Y L insights shared by early reviewer

The Model Y L could very well become Tesla’s best-selling family vehicle by a mile.

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Credit: @cyfoxcat/X

An early reviewer of the Tesla Model Y L in China has teased what could very well be the most comprehensive list of features that has been shared so far about the upcoming extended wheelbase crossover.

Based on the early reviewer’s insights, the Model Y L could very well become Tesla’s best-selling family vehicle by a mile.

Model Y L sightings

The Tesla Model Y L has reportedly entered production in Giga Shanghai, though the vehicle itself is not being sold in the company’s domestic website as of yet. That being said, sightings from the electric vehicle community have suggested that Tesla China is now hard at work transporting Model Y L units to select stores across the country.

The Model Y L was listed in the China Ministry of Industry and Information Technology’s (MIIT) latest batch of new energy vehicle models that are eligible for vehicle purchase tax exemptions. Based on the MIIT’s filings, the vehicle will feature a 82.0-kWh lithium-ion battery from LG Energy Solution. It is also expected to add roughly 178 mm (7 inches) to the overall length of the standard Model Y, with 152 mm (6 inches) being dedicated to stretching the wheelbase.

New Model Y L insights 

A China-based blogger who reportedly previewed the Model Y L ahead of an expected nondisclosure agreement lift on Tuesday or Wednesday shared some of the vehicle’s alleged updates. As per the blogger, the Model Y L’s biggest updates focus on comfort and interior features. The front seats have reportedly been reworked with better cushioning, leg rests and lumbar support, though they do not add zero-gravity seating or massage functions. 

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The vehicle also comes with Continuous Damping Control suspension, a larger central display and an upgraded audio system with about 18 speakers, which was described as a significant improvement in sound quality. Amenities have reportedly been expanded for passengers in all three rows. Heating and ventilation will reportedly be available in the first and second rows, while the third row will have heating only. 

The third-row space was described as adequate, with a passenger standing 1.78 meters tall reportedly being able to sit with a fist’s worth of headroom. Tesla’s minimalist interior design reportedly remains, but the second row now includes armrests. Both the second and third rows also reportedly fold flat to form a large bed, though not as flat as the standard Model Y. A voice wake-up feature, “Hi Tesla,” is also included for China models.

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FAA clears SpaceX for Starship Flight 10 after probe into Flight 9 mishap

SpaceX will attempt a Gulf splashdown for Flight 10 once more instead of a tower capture.

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Credit: SpaceX

The Federal Aviation Administration has closed its review of SpaceX’s Starship Flight 9 mishap, clearing the way for the next launch attempt as soon as August 24. 

Flight 9 ended with the loss of both the Super Heavy booster and the upper stage, but regulators accepted SpaceX’s findings that a fuel component failure was the root cause. No public safety concerns were reported from the incident.

Starship recovery lessons

SpaceX noted that Flight 9 marked the first reuse of a Super Heavy booster. Unlike prior attempts, the company did not try a tower “chopsticks” recovery, opting instead for an offshore return that ended in a destructive breakup. The upper stage was also lost over the Indian Ocean. 

As per the FAA in its statement, “There are no reports of public injury or damage to public property. The FAA oversaw and accepted the findings of the SpaceX-led investigation. The final mishap report cites the probable root cause for the loss of the Starship vehicle as a failure of a fuel component. SpaceX identified corrective actions to prevent a reoccurrence of the event.”

SpaceX also highlighted that Flight 9’s debris did not harm any wildlife. “SpaceX works with an experienced global response provider to retrieve any debris that may wash up in South Texas and/or Mexico as a result of Starship flight test operations. During the survey of the expected debris field from the booster, there was no evidence of any floating or deceased marine life that would signal booster debris impact harmed animals in the vicinity,” the private space company noted.

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Expanding test objectives

To mitigate risks, SpaceX plans to adjust return angles for future flights and conduct additional landing burn tests on Flight 10. SpaceX will attempt a Gulf splashdown for Flight 10 once more, instead of a tower capture, according to a report from the Boston Herald.

The upcoming Starship Flight 10, which will be launching from Starbase in Texas, will also mark SpaceX’s attempt to perform its first payload deployment and an in-space Raptor relight. Despite recent setbacks, which include the last three flights ending with the upper stage experiencing a rapid unscheduled disassembly (RUD), Starship remains central to NASA’s Artemis program, with a variant tapped as the human landing system for Artemis III, the first since the Apollo program. 

Standing more than 400 feet tall and generating 16 million pounds of thrust, Starship remains the most powerful rocket flown, though it has yet to complete an orbital mission. The FAA has expanded SpaceX’s license to allow up to 25 Starship flights annually from Texas.

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