SpaceX looks to raise $1.7 billion in new funding, boosting its valuation to $127 billion

CNBC has learned that the private company is raising a large amount of new funding.

The space venture is looking to raise up to $1.725 billion in new capital at a price of $70 per share, according to an email obtained by CNBC. In February, the stock price was split 10-for-1 and the common stock price was reduced to $56 a share, representing a 25% increase.

The company is conducting a secondary sale of up to $750 million in common stock. The company conducts these secondary offerings as a way for long-time stockholders to sell equity since it remains private more than 20 years since its founding.

The cash injection was not previously reported. The New York Post reported that SpaceX was looking to bring in more funding and that the capital increase had seen a lot of demand.

The company's valuation has soared in the last few years as it has raised billions to fund work on two capital-intensive projects.

The funding round for the company comes as Musk is accused of sexual harassment by a former employee. The billionaire has denied the claims made against him as wild accusations.