Elon Musk’s SpaceX looks to raise $1.7 billion in new funding

SpaceX is raising a massive round of fresh funding, CNBC has learned, sending the private company’s valuation to about $127 billion.

The space venture is looking to bring in up to $1.725 billion in new capital, at a price of $70 per share, according to a company-wide email on Friday obtained by CNBC. Notably, SpaceX split its stock price 10-for-1 in February, which reduced the common stock to $56 a share – with the new valuation representing a 25% increase.

SpaceX is also conducting a secondary sale to company insiders and existing shareholders for up to $750 million in common stock. The company conducts these secondary offerings regularly, as a way for long-time stockholders to sell equity, given that SpaceX remains private more than 20 years since its founding.

Details of the cash infusion were not previously reported. The New York Post first reported SpaceX was looking to bring in more funding, and noted, citing unnamed sources, that the capital increase has seen “tepid demand” so far.

The company’s valuation has soared in the last few years as SpaceX has raised billions to fund work on two capital-intensive projects: the next generation rocket Starship and its global satellite internet network Starlink.

The company’s funding round comes as founder and CEO Elon Musk is embroiled in sexual harassment allegations reportedly from a former SpaceX jet flight attendant. The billionaire has denied the claims made against him as “wild accusations.” The flight attendant reportedly did not sue SpaceX, and instead reached a $250,000 severance agreement in 2018.