SpaceX Prepares for Historic IPO

SpaceX is gearing up for its next launch attempt at NASA’s Kennedy Space Center in Cape Canaveral, Florida, scheduled for September 9, 2024. The company, led by Elon Musk, is also preparing to go public with what might be the most significant IPO in history.

The space company has filed its financial details with regulators, aiming for the largest initial public offering to date. While the exact amount SpaceX intends to raise wasn’t specified, reports indicate the company is targeting around $80 billion. This would surpass Saudi Aramco’s $29 billion record set in 2019. The IPO might also value SpaceX at over $1 trillion, placing its worth potentially above Musk’s Tesla, the electric-car giant.

Holding 85% of the company’s voting power, Musk stands poised to increase his wealth significantly. The IPO follows SpaceX’s confidential filing with the U.S. Securities and Exchange Commission earlier this year, a move reported by the Associated Press in April.

Aside from SpaceX, other tech IPOs may soon emerge, including those from OpenAI and Anthropic, makers of AI platforms like ChatGPT. These public offerings will give regular investors access to some of the leading tech companies propelling the AI surge.

Expanding beyond space launches, SpaceX has created reusable rockets and runs the Starlink satellite internet service. In recent developments, the company merged with Musk’s AI firm, xAI. SpaceX’s aspirations include building orbital data centers, moon bases, and eventually colonizing Mars.

Financial documents reveal substantial investments to realize these goals. Last year, xAI amplified capital spending to $12.7 billion, driven by data centers and construction. Additionally, $3 billion was invested in developing the Starship rocket. However, two of SpaceX’s primary segments recorded losses in the year’s first quarter, with the rocket-launching division seeing a $662 million operating loss and the AI business a $2.5 billion deficit. Only its satellite consternations arm, operating Starlink, achieved a $1.2 billion operating profit.

Cumulatively, SpaceX reported a net loss of $4.3 billion from January to March, against revenues totaling $4.7 billion.

The Impact and Risks of IPOs

IPOs provide public-market investors, including individuals, the chance to purchase shares in leading companies. Such public offerings generate vast capital for the companies and previous private investors. Analysts hope SpaceX’s IPO will rejuvenate the IPO market after subdued activity in recent years.

However, IPO investors face risks. Historically, post-IPO companies often underperform the broader market. Franco Granda, a research analyst at PitchBook, notes the scrutiny public firms face from regulators and the public, especially high-profile ones like SpaceX.

Granda mentions, “Historically speaking, it’s pretty jarring how bad it is.” Public entities undergo heavier scrutiny, making their valuations challenging to uphold.

SpaceX’s Connection to Elon Musk

SpaceX’s fortunes are closely tied to Musk’s vision. Founded by him in 2002, the company aims to create a sustainable colony on Mars. Musk’s innovation brought significant advancements, including a reusable rocket stage that reduced costs immensely.

SpaceX has won various contracts for defense satellites, commercial payloads, and astronauts aboard its Dragon capsule. Projects with the Department of Defense and NASA have been lucrative for SpaceX.

An independent analysis by Brycetech shows that SpaceX rockets accounted for 85% of last year’s global launches, eclipsing state-operated programs in China and Russia.

Despite leading in space launches, this sector represents a small fraction of SpaceX’s revenue. Tim Farrar of TMF Associates highlights that Starlink dominates the company’s earnings. In 2025, its connectivity division generated $11.4 billion compared to $4.1 billion from launches and $3.2 billion from AI.

Yet Farrar posits that reliance on Starlink alone doesn’t warrant a trillion-dollar valuation. He states, “The valuation is completely dependent on the degree to which people believe in Elon Musk. It’s not dependent on the current business.”