SpaceX Secondary Stock Sales: Sweet Deals for Investors and Employees

In the high-stakes world of startups, SpaceX has emerged as one of the most thrilling companies in the aerospace industry. However, the intrigue doesn’t stop with their groundbreaking technology and space missions. The story behind SpaceX stock sales — particularly the secondary sales where employees sell their shares — offers a fascinating insight into the world of private investments and the perks for insiders.

SpaceX’s Sweet Deals for Investors and Employees

SpaceX occasionally offers its employees a chance to sell their shares via secondary stock sales, and some investors get special access to purchase shares at highly discounted prices. Let’s break down how these deals work and who gets to benefit from them.

The Discounted Shares: How It Works

In May 2022, SpaceX offered employees the opportunity to sell their shares at just $70 per share. To put this in perspective, the price for SpaceX shares during the primary sales — where outside investors buy shares directly from the company — was much higher, at $270 per share in 2022.

The big difference in pricing occurs because employees typically hold common stock, while investors in primary rounds typically buy preferred stock. Preferred stockholders enjoy benefits like dividends and liquidation preferences — they get their money back first if SpaceX were to sell itself.

For SpaceX employees, the lower price offers a chance to cash out and make some profit, but these shares come with greater risk. However, with SpaceX’s valuation surging to over $350 billion, employees are in a great position if they hold on to their stock.

Who Gets the Opportunity to Buy?

Only a select few investors are authorized to purchase these discounted shares. These are often big-name firms that have close ties with SpaceX and its CEO, Elon Musk. Among the notable investors are:

Andreessen Horowitz (a16z) – The renowned venture capital firm secured nearly 4.3 million shares for around $300 million. Although not a longtime investor in SpaceX, a16z has made significant investments in the company in recent years, especially in the $250 million raise in 2022.
Read more about a16z.
Aliya Capital Partners – This Miami-based family office has invested heavily in SpaceX, acquiring 1.4 million shares for roughly $100 million. Aliya is known for its investments in several top startups, including Figure AI, Impossible Foods, and Anduril.
Learn more about Aliya Capital Partners.
Gigafund – Co-founded by a SpaceX board member, Gigafund acquired over 1.4 million shares, totaling $100 million. Gigafund has a long history of supporting SpaceX through various rounds of funding.
Explore Gigafund’s involvement.

Good News for SpaceX Employees

Employees have also benefited from these stock sales. For instance, February 2022 saw a 10-for-1 stock split for SpaceX’s Class A, B, and C common shares, improving the value for employees selling their shares. The $70 per share price in the secondary sale was an improvement over the previous offer of $56.

The next secondary sale is also expected to be a good deal for employees, with reports suggesting that the price could reach as high as $108–$110 per share in upcoming sales.

Looking Ahead: Will SpaceX Go Public?

Currently, SpaceX remains a private company, and the secondary sales are one of the few ways employees can liquidate their shares. While the company has not yet announced plans to go public, these secondary deals remain an important option for investors and employees to benefit from SpaceX’s astronomical growth.

What Does the Future Hold for SpaceX and its Shareholders?

As SpaceX’s valuation continues to surge — recently hitting $350 billion — secondary stock deals are becoming increasingly attractive to both investors and employees. For example, one of the latest tender offers was priced at $70 per share, but future rounds could see the share price rise even further, potentially reaching $110 per share.

These deals also offer investors a rare opportunity to get in on SpaceX at a discounted price, given the company’s high valuation.

If SpaceX goes public in the future, these secondary sales could become a stepping stone toward more liquidity for employees and investors alike. However, for now, secondary stock deals are one of the only ways employees can cash out their stock.

Sources:

SpaceX raised $750 million in a 2023 funding round, bringing its valuation to $137 billion. Find out more.
Andreessen Horowitz (a16z) is a major investor in SpaceX. Explore more.
Aliya Capital Partners and its stake in SpaceX. Learn more.
Gigafund co-founded by a SpaceX board member, has been a significant player. Read further.