In January 2025, SpaceX ran one of its periodic employee tender offers at $185 per share, implying a $350B company valuation. That's up from $210B just six months prior, making SpaceX the highest-valued private company in history.
Why SpaceX runs tenders
SpaceX has been running employee tenders roughly twice a year for the past five years. These aren't IPOs — the company stays private — but they let employees sell some of their vested stock back to the company or to outside investors brought in for the round.
Tenders solve two problems at once: employees get liquidity without an IPO, and the company keeps its cap table closed (no public reporting required).
Tax math: ISO vs share holding period
If you exercised ISOs more than a year before the tender, and more than two years after grant, the entire gain qualifies for long-term capital gains. At federal max rates, that's about 23.8% (20% LTCG + 3.8% NIIT) — much better than the ~37% top ordinary rate.
If you exercised options and tendered within a year, the gain is short-term and taxed as ordinary income. If you participate in the tender without first exercising (a 'cashless' tender), the bargain element on options is ordinary income, period.
Concrete example: a 2022 hire with 10,000 ISOs at $65 strike, exercised in 2024, tendering at $185 in 2025. Spread = $1.2M. Held >1 year: $1.2M × 23.8% = ~$286K in tax. Held <1 year: ~$444K. The 12-month timing decision is worth $158K.
How much remains unvested
Most SpaceX employees on a 4-year vesting schedule won't have all their grants fully vested at the time of a tender. Tenders typically only purchase vested shares, so part of your stake stays illiquid until the next event.
Some senior employees negotiate accelerated vesting tied to tender events. Most don't — and the unvested portion remains locked up. Worth checking your grant agreement before the next tender announcement.