A SpaceX Falcon 9 rocket and Dragon spacecraft before the Inspiration4 mission in Merritt Island, Florida, United States, on Wednesday, September 15, 2021.
Eva Marie Ozkategi | Bloomberg | Getty Images
The split means that for every share of SpaceX stock owned as of Thursday, the owner now owns 10 shares after the conversion. With SpaceX valuing $560 per share during its most recent sale, the split reduces SpaceX’s common stock to $56 per share, according to a company-wide email obtained by CNBC.
“The split has no effect on the overall valuation of the company or the overall value of your SpaceX holdings,” the email reads.
SpaceX did not immediately respond to CNBC’s request for comment.
As the employee email confirms, the stock split is cosmetic and doesn’t fundamentally change anything about the company. Companies sometimes do stock splitssuch as high-growth technology companies such as an Apple or Google AlphabetThis step is usually seen as a way to make posts more accessible or manageable.
This is the first time that SpaceX has conducted a stock split, according to several people familiar with the private company.
The company’s valuation has skyrocketed in the past few years as SpaceX has raised billions to fund work on two capital-intensive projects: Starship Next Generation Rocket And the Starlink Global Satellite Internet.