Sunday, March 18, 2018

Musk's SpaceX Is Making Big Money Moves

As Elon's only profitable entity it is important to groom and care for the rocket company. You never know when you need a friendly buyer for your SolarCity Tesla short-term debt.
From TechCrunch:
Planning a Mars mission, a global telecommunications network for inexpensive internet service and creating an interplanetary hedge against World War Three isn’t cheap, so it’s no wonder that SpaceX is closing on $500 million in new cash through a financing round led by Fidelity, according to multiple sources with knowledge of the round.

Responding to clamoring demand from investors and their own desires to cash out (at least a little bit), existing shareholders in the company are creating several special purpose vehicles to sell shares on the secondary market — with our sources saying those secondary offerings could total an additional $500 million.

Shares for the company are selling for somewhere between $160 and $170, according to our sources.

One big buyer of SpaceX shares is reportedly SpaceX chief executive and founder Elon Musk, who multiple sources have said is investing $100 million to buy up shares.

News of the initial fundraising effort was first reported by CNBC, which pegged the valuation of Musk’s space exploration venture at roughly $21.5 billion.

That’s a huge jump from 15 years ago, when the company’s shares were issued at around 5 cents and Elon Musk said it was struggling to get cash in the door, basically living week-to-week....MORE
HT: Inverse

Previously on Family Affair:
Tesla-Solar City: Cousins Shouldn't Get Married (to each other) TSLA; SCTY--UPDATED

Elon Musk's SpaceX Has Been Buying Up Elon Musk's SolarCity's Bonds (SCTY)
One of the things they teach you in Junior Forensic Analyst school: watch for related party transactions.

One of the things they don't teach you, extrapolating this discovery to the logical question: "How important is cost-of-funds to SolarCity's very survival?"