New York — SpaceX has announced plans to raise up to $75 billion through its initial public offering (IPO) scheduled for this month, potentially marking the largest stock market debut in history. This move positions Elon Musk, currently the wealthiest individual globally, on the path to becoming the first trillionaire.
Formally known as Space Exploration Technologies Corp., the company revealed on Wednesday that it will issue precisely 555,555,555 shares at a price of $135 each in its IPO, according to reports from the French news agency AFP. If successful, this fundraising effort would surpass the $26 billion raised by Saudi Aramco in 2019 and assign SpaceX a market valuation of $1.77 trillion. Presently, only six companies within the S&P 500 have higher valuations, with Nvidia leading at $5.2 trillion.
In addition to the significant financial expectations surrounding the offering, SpaceX’s updated prospectus sheds light on Elon Musk’s level of control over the company. As the CEO, chief technical officer, and chairman, Musk’s influence will largely stem from his ownership of 5.22 billion Class B shares, which grant 10 votes per share. The filing indicates that Musk will retain 82.4% of the company’s voting power.
Forbes currently estimates Musk’s net worth at $826 billion, with his share in SpaceX valued at $542 billion, based on an overall company valuation of $1.25 trillion. Should SpaceX achieve the projected valuation of $1.77 trillion, Musk’s net worth could increase by $223 billion, potentially making him a trillionaire, although a significant portion of his wealth is tied up in stock that he has not yet liquidated.
Despite its ambitious IPO plans, SpaceX is currently facing substantial financial losses, with the company reporting an operational loss of $2.6 billion last year against revenues of $18.7 billion. The preliminary figures indicate continued losses into the current year.
As SpaceX prepares for its market entry, the company’s IPO document presents a colorful, at times alarming, narrative that contrasts with the typically dry and technical nature of such filings. The document outlines plans for using the IPO proceeds to facilitate missions to the Moon and potentially Mars, highlighting aspirations to establish “a permanent human colony” on the Martian surface, aiming for a population of “at least one million” in response to existential threats that could endanger humanity.
Musk’s ambitions extend to his other publicly traded venture, Tesla, where he aims to evolve the electric vehicle manufacturer into a creator of robotaxis and humanoid robots.
Dan Ives from Wedbush Securities noted in a research report that he anticipates a merger between Tesla and SpaceX in the coming year.
A crucial factor for the success of both SpaceX and Tesla — and any potential merger — lies in artificial intelligence (AI). In its IPO filing, SpaceX indicated a forecasted revenue potential from AI reaching up to $26.5 trillion, contingent upon Musk’s goal of establishing data centers in space, a concept not currently feasible with existing technology.
Transitioning SpaceX into a predominantly AI-focused company may prove challenging for Musk. He initiated xAI in 2023 with a team of 11 co-founders, most of whom have since departed for rival firms. The company’s main AI offering, the chatbot Grok, has been described as “less impressive” compared to competitors such as OpenAI and Anthropic, according to IDC analyst Arnal Dayaratna.
However, Dayaratna noted that SpaceX possesses significant potential to emerge as a major player in the AI domain, especially through its computing partnership with Anthropic and Musk’s recent agreement to acquire the AI coding tool Cursor for $60 billion later this year. This acquisition could provide SpaceX with access to essential business clients currently utilizing Anthropic’s Claude or OpenAI’s ChatGPT.
SpaceX intends to allocate the net proceeds from the IPO towards enhancing infrastructure for its AI and rocket divisions, as well as expanding its satellite constellation for Starlink Mobile, among other investments.
As Kathleen Brooks, research director at XTB in London, stated, “The AI trade continues to roar, just in time for SpaceX’s IPO next week,” according to AFP.
The company is set to list on the Nasdaq under the ticker symbol “SPCX,” with trading possibly commencing as early as the end of next week.
SpaceX is not the only major market debut on the horizon; earlier this week, Anthropic filed confidentially with the U.S. Securities and Exchange Commission to initiate its own IPO process. OpenAI has yet to announce any filings but is widely anticipated to follow suit with its own IPO.
Ives remarked that this listing will serve as a critical test for public markets following a period of subdued IPO activity, with SpaceX leading the way for AI powerhouses Anthropic and OpenAI to potentially follow soon thereafter.
