SpaceX, the prominent space transportation and satellite manufacturing company led by Elon Musk, is reportedly preparing for an insider share transaction that could significantly elevate its valuation. According to Bloomberg, quoting sources familiar with the development, this move could push SpaceX's valuation to more than $500 billion, potentially surpassing OpenAI's record-setting $500 billion valuation achieved previously.

Further insights from individuals with knowledge of the matter suggest that the insider share selling could increase SpaceX's valuation to approximately $800 billion. The company's latest tender offer details, including the share price, could be subject to change based on interest from insider sellers and buyers, or other influencing factors. SpaceX's board of directors reportedly discussed these details on Thursday at its Starbase hub in Texas.

A person briefed on the matter indicated that the SpaceX share price under discussion is higher than $400 apiece, which would place the company's valuation between $750 billion and $800 billion. If this plan materializes and is confirmed, SpaceX would become the most valuable privately held company, surpassing the ChatGPT owner, OpenAI, which had set its $500 billion valuation record in October.

The proposed $400 per share figure represents a substantial increase from the $212 apiece set in July, when SpaceX last raised funding and sold shares at a valuation of $400 billion. Despite these internal discussions and reports, SpaceX has not yet made any public announcement regarding the share selling deal.

Earlier reports from The Wall Street Journal and Financial Times, also citing unnamed sources familiar with the matter, corroborated that a deal could value SpaceX at $800 billion. News of SpaceX's potential valuation surge led to a significant increase in shares of EchoStar Corp., a satellite TV and wireless company, which jumped as much as 18%. This surge followed EchoStar's agreement a month prior to sell spectrum licenses to SpaceX for $2.6 billion.

Beyond the current insider share sale, there is speculation regarding a potential Initial Public Offering (IPO). Another source with knowledge of the matter told Bloomberg that SpaceX might pursue an IPO as early as late next year. If launched, a SpaceX IPO at an $800 billion valuation would place the company among an elite group of the 20 largest public companies, positioning it a few notches below Elon Musk's other venture, Tesla.

Should SpaceX proceed with an IPO involving the sale of 5% of the company at an $800 billion valuation, it would entail selling $40 billion worth of stock. This would make it the biggest IPO of all time, exceeding Saudi Aramco’s $29 billion listing in 2019. However, a public listing would also expose SpaceX to the inherent volatility of being a public company, a contrast to the closely guarded valuations of private firms. This potential shift from a private entity to a public company would expose SpaceX to market fluctuations.