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Elon Musk’s SpaceX is now worth more than Tesla

Elon Musk talks to a Falcon 9 rocket during his announcement that Japanese billionaire Yusaku Maezawa will be the first private pbadenger to fly around the Moon aboard the SpaceX BFR launch vehicle.

DAVID MCNEW | AFP | false images

Elon Musk space company SpaceX is now worth more than its electric car company, Tesla, at least on paper.

SpaceX is valued at $ 33.3 billion, according to investors familiar with the latest round of the company told CNBC. Tesla's market capitalization was $ 32.8 billion at the end of Friday's operations.

Musk is the largest shareholder and CEO of both companies, with a 54% stake in SpaceX and more than 20% ownership of Tesla.

SpaceX successfully launched 60 Starlink satellites in orbit recently, and has raised more than $ 1.02 billion since the beginning of 2019. Tesla shares have declined by more than 44% during the same period.

The electric vehicle manufacturer has struggled to control its expenses, while betting its future to success in China. His effort to establish a factory in Shanghai began this year as commercial relations between the United States and China deteriorated rapidly.

Until Tesla can manufacture its Model 3 electric sedans there, it faces heavy import taxes in China. It also faces higher tariffs on parts and raw materials that it buys from Chinese suppliers to manufacture its batteries and automobiles in the United States.

Elon Musk, co-founder and CEO of Tesla Motors Inc.

Yuriko Nakao | Bloomberg | false images

Morgan Stanley badyst Adam Jonas said (in a call on May 22) that investors should not rule out the possibility that Musk could use his stake in SpaceX to "collateralize" Tesla. "There is a precedent for Elon Musk to think about his portfolio of companies," he said, referring to the acquisition of SolarCity in 2016 by Tesla.

The agreement cost Tesla around $ 5 billion: it issued $ 2 billion in shares and took about $ 3 billion in SolarCity debt. It was also seen as a rescue for Musk and his family; his cousin Lyndon Rive was the CEO of the residential solar installer, while Elon Musk and other friends and family had also personally invested in SolarCity.

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