BREAKING NEWS

Musk's SpaceX to raise $500 million in funding - WSJ

Musk's SpaceX to raise $500 million in funding - WSJ
FILE PHOTO: The top of a replica Crew Dragon spacecraft is show at SpaceX headquarters in Hawthorne, California, U.S. August 13, 2018. REUTERS/Mike Blake -
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Mike Blake(Reuters)
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(Reuters) – Elon Musk’s rocket company SpaceX Corp is set to raise $500 million at a $30.5 billion valuation, the Wall Street Journal reported on Tuesday, citing people familiar with the fundraising plan.

The company is raising the capital from existing shareholders and new investor Baillie Gifford & Co, who is also the third-largest shareholder in Musk-led electric carmaker Tesla Inc <TSLA.O>.

The company plans to invest the fund in the company’s satellite internet service, Starlink, WSJ said.

The proposed services – essentially a constellation of satellites that will bring high-speed Internet to rural and suburban locations globally – are key to generating the cash that SpaceX needs to fund Musk’s real dream of developing a new rocket capable of flying customers to the moon and eventually trying to colonize Mars.

SpaceX declined to comment.

SpaceX investors are paying $186 per share for new stock in the latest funding round, WSJ reported, adding that it is up about 10 percent from the $169-per-share paid during an April fundraising.

In April, Reuters reported that SpaceX was raising $507 million in a new round of funding, valuing the company at around $26 billion.

The Hawthorne, California-based company has outlined plans for a trip to Mars in 2022, to be followed by a manned mission to the red planet by 2024.

Separately, SpaceX’s launch of a much-delayed navigation satellite for the U.S. military was halted on Tuesday, postponing for at least a day the space transportation company’s first designated national security mission for the United States.

(Reporting by Vibhuti Sharma in Bengaluru; Editing by Shinjini Ganguli and James Emmanuel)

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