Elon Musk’s SpaceX to split private equity 10-for-1

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A SpaceX Falcon 9 rocket and Dragon spacecraft before the Inspiration4 mission at Merritt Island, Florida, U.S., Wednesday, September 15, 2021.

Eva Marie Uzcategui | Bloomberg | Getty Images

Elon Musk’s SpaceX is splitting the value of its common stock 10-to-1, CNBC has learned, as the company’s valuation has soared to more than $100 billion.

The split means that for every SpaceX share held from Thursday, a holder now has 10 shares after the conversion. With SpaceX valued at $560 per share in its last sale, the split cuts SpaceX common stock to $56 per share, according to a company-wide email obtained by CNBC.

“The split has no impact on the overall valuation of the business or the overall value of your SpaceX holdings,” the email states.

SpaceX did not immediately respond to CNBC’s request for comment.

As the email to employees points out, a stock split is cosmetic and does not fundamentally change the business. Companies occasionally do stock splits, such as high-growth tech companies like Apple or Google-parent Alphabet, and the move is generally seen as a way to make stocks more accessible or manageable.

This is the first time SpaceX has done a stock split, according to several people familiar with the private company.

The company’s valuation has skyrocketed in recent 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.

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