SpaceX is set for a rare and historic Wall Street debut, raising $75 billion in what could become the largest IPO ever. The listing is expected to value Elon Musk’s rocket and satellite company at about $1.8 trillion.The listing marks a new chapter for the company that began more than two decades ago with the ambition to drive down the cost of space travel. Today, SpaceX spans rocket launches, satellite internet and artificial intelligence, even as rising expenses are testing its profitability.As investors prepare for one of the most-watched stock market debuts in recent years, here are 10 key takeaways from the offering.
Blockbuster IPO
SpaceX said it sold all 555,555,555 shares offered in the listing at $135 a share. Based on those terms, the company is set to raise approximately $75 billion. The offering will surpass Saudi Aramco’s $29.4 billion listing in 2019, making it the largest IPO ever.
world’s first trillionaire
A large part of Musk’s wealth is now tied to SpaceX. His current stake in the company is estimated at around $866 billion. With his stake in Tesla and other assets, his net worth is expected to exceed $1.1 trillion once SpaceX begins trading.
World’s first 2 trillion dollar asset
After the IPO, Musk is expected to retain ownership of about 42% of SpaceX. Although he may not be able to sell those shares for a year under the terms outlined in the financial filings, the company’s valuation could greatly increase his paper assets.According to ABC News, with the Tesla compensation package approved by shareholders last year, Musk could eventually approach a net worth of $2 trillion in the coming years.
Institutional investors are lining up
Demand for SpaceX shares has been unusually strong. BlackRock alone had sought to buy at least $5 billion worth of stock, the Wall Street Journal reported. Other large fund managers also placed large orders, exceeding the scale typically associated with public offerings.For comparison, Cerebra, which had the biggest IPO this year ahead of SpaceX, raised a total of $5.55 billion.
SpaceX – more than a rocket company
Founded in 2002, the company has expanded significantly since its launch. It operates Starlink, a satellite internet network supported by thousands of satellites in orbit.Earlier this year, SpaceX merged with Musk’s artificial intelligence venture xAI. The company has described the deal as central to its ambition to build an “orbital data centre” capable of providing computing power from space.
behind revenue growth
Financial filings showed that SpaceX generated revenue of $18.7 billion, representing a 33% increase from the previous year. Starlink took a larger share of that business, serving about 10.3 million users via 9,600 satellites.Despite the increase in sales, SpaceX reported a net loss of $4.94 billion. This was followed by a profitable 2024, when the company reported earnings of $791 million.
Retirement savers may soon indirectly own SpaceX shares
A change in stock exchange rules could pave the way for SpaceX to join major indices sooner than newly listed companies, ABC News reports.Since many retirement accounts invest through index funds tracking benchmarks like the Nasdaq and S&P 500, SpaceX could quickly become part of a 401(k) portfolio.
spacex launch
According to Reuters, SpaceX has gone from doing a single launch in 2006 to more than two launches per week. That frequency has helped secure its position as a launch provider for both NASA and the Pentagon.
Falcons remain at the center of rocket operations
The reusable Falcon 9 rocket remains the basis for much of SpaceX’s business. The Falcon Heavy, built using three Falcon 9 boosters, is capable of lifting 64 metric tons to low-Earth orbit and is used for military and deep space missions.Meanwhile, Starship continues to be developed as SpaceX pursues large-scale human and cargo transportation capabilities.
AI is a growing priority
SpaceX has identified AI as one of its biggest opportunities following the integration of xAI into the business.Yet adoption of XAI’s services has been relatively limited compared to competitors. According to a report from finance startup Ramp, more than 30% of its business customers were paying for Anthropic and OpenAI’s products in April, while XAI’s adoption rate stood at about 5%.