SpaceX is in early discussions to sell insider shares that could boost the value of Elon Musk’s rocket and satellite company to around $255 billion, people familiar with the matter said.

That would be a premium to the company’s previous valuation of about $210 billion. It would also cement SpaceX’s status as the most valuable private US company.

SpaceX, formally known as Space Exploration Technologies Corp., declined to comment on the valuation.

Destiny Tech100 is a fund that offers retail investors access to high-profile private startups, and SpaceX is Destiny Tech100's largest holding, making up about 37.6% of the portfolio.

Destiny Tech100 soared 15.6% in premarket trading Monday.

The secondary, where employees and some early shareholders can sell shares, provides investors in privately held SpaceX a new way to profit off of Musk’s deep ties with President-elect Donald Trump and the windfalls across the billionaire’s business empire. Shares in electric vehicle maker Tesla Inc., Musk’s only publicly traded company, have jumped 26% since the Nov. 5 election, adding $200 billion to its market capitalization.

The current conversations with SpaceX are ongoing and the details of a potential transaction could change depending on interest from insider sellers and buyers, cautioned the people, who asked not to be identified because they’re not authorized to speak publicly.

The Financial Times, citing people with knowledge of the talks, earlier reported that SpaceX is preparing to launch a tender offer in December that will sell existing shares in the business at about $135 each, valuing the company at more than $250 billion. The Financial Times said SpaceX declined to comment.

In a tender, a company does not issue new shares, award new equity or raise funds from the transaction.

The new valuation would be a record for an American private company, but is still lower than the $268 billion December 2023 valuation of ByteDance Ltd., the Chinese parent of social video phenom TikTok. Already, SpaceX is on par with some of the world’s largest publicly traded companies by market capitalization.

SpaceX is speeding development of its colossal Starship moon and Mars rocket and already dominates the market for commercial space launch services with its Falcon family, sending cargo and people to orbit for the National Aeronautics and Space Administration and other government agencies.

SpaceX also operates its internet-from-space Starlink service, anchored by a growing constellation of satellites in low-Earth orbit.