Elon Musk’s SpaceX to split its private shares 10 to 1

Elon Musk’s SpaceX shares the value of its common stock 10 to 1, CNBC has learned, with the company’s valuation rising to over $100 billion.

The split means that for every share of SpaceX held as of Thursday, the owner now has 10 shares after the conversion. According to a company email obtained by CNBC, SpaceX was valued at $560 a share at the time of its last sale, so the split reduces SpaceX’s common stock to $56 a share.

“The split will not affect the overall valuation of the company or the total value of your SpaceX assets,” the email said.

SpaceX did not immediately respond to a CNBC request for comment.

As emphasized in an email to employees, the stock split is cosmetic and does not fundamentally change anything in the company. Companies sometimes do stock splits, such as fast-growing tech companies like Apple or Google’s parent company Alphabet, and the move is usually seen as a way to make the stock more accessible or manageable.

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

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