SpaceX has publicly filed for its initial public offering (IPO), disclosing billions in losses and a super-voting share structure that ensures Elon Musk retains control over the rocket, satellite, and artificial intelligence company. The formal name is Space Exploration Technologies Corp., which has chosen to list on Nasdaq under the ticker symbol SPCX. Bloomberg News reported that SpaceX had previously submitted a confidential filing for the IPO in April.
In the first quarter, SpaceX reported a net loss of $4.28 billion on revenues of $4.69 billion, compared to a net loss of $528 million on revenues of approximately $4 billion in the same period last year. The company aims to raise as much as $75 billion, pushing its valuation above $2 trillion, a figure that would surpass the $29.4 billion IPO record set by Saudi Aramco in 2019.
Musk holds 12.3% of the Class A shares and 93.6% of the Class B shares, translating to 85.1% of the voting power in the company. The Class B shares provide Musk with ten votes each, allowing him to maintain control post-IPO.
If successful, SpaceX’s substantial IPO could reshape both public and private markets. A strong listing followed by a rising share price could alleviate concerns regarding the valuations of private companies with limited financial disclosures, especially in venture capital funding rounds.
The IPO could also incentivize other private companies to consider mega-IPOs. Notably, AI companies like OpenAI and Anthropic PBC are eyeing listings for this year, having garnered significant attention within the technology sector.
Goldman Sachs Group Inc. and Morgan Stanley are at the helm of SpaceX’s underwriting process, with additional participation from Bank of America Corp., Citigroup Inc., and JPMorgan Chase & Co., among others. Formal marketing is expected to start around June 4, with pricing potentially taking place as soon as June 11.
The company’s filing illustrates a level of maturity uncommon in pre-IPO entities. SpaceX holds a leading position in the space transportation sector and is a crucial launch provider for both NASA and the Pentagon. Much of its revenue stems from its Starlink satellite internet service.
During the three months ending March 31, the space segment generated $619 million in revenue with an operational loss of $662 million, compared to $4 billion and a loss of $657 million in the same period last year. Musk’s letter regarding the acquisition of xAI indicated plans to create an “ambitious, vertically-integrated innovation engine,” envisioning next-generation Starships delivering internet services directly to mobile phones and eventually enabling orbital data centers.
Musk believes that AI computations will be more cost-effective in space within two to three years, utilizing solar power for data centers that could later be built on the Moon, advancing the long-term goal of a Martian civilization.
SpaceX has also bolstered its AI strategy, announcing a $60 billion agreement for potential acquisition of AI startup Cursor within the year, or a $10 billion fee if the arrangement doesn’t materialize. The company’s private valuation soared to $1.25 trillion following the acquisition of Musk’s AI startup xAI, which included the social media platform X.
At a valuation of $2 trillion, SpaceX’s market cap would exceed that of most companies in the S&P 500 Index and surpass Tesla Inc., which Musk also oversees. His net worth stands at approximately $680 billion according to the Bloomberg Billionaires Index, with potential for significant gains if the IPO succeeds.
Following Musk, the largest shareholder is Antonio Gracias, who holds 7.3% of the Class A shares, primarily through funds at Valor Equity Partners. Early investors, including Alphabet Inc.’s Google, which had a 6.11% stake by the end of 2025, stand to benefit significantly.
SpaceX’s investor roster includes Baillie Gifford, Baron Capital, Brookfield, Fidelity, and Sequoia Capital. Investors and stakeholders may be subject to lock-up agreements preventing share sales immediately following the IPO.
Skepticism remains about Musk’s ambitious goals, such as establishing space-based data centers and achieving operational milestones with Starship rockets. Analysts have noted challenges in justifying the lofty valuations, particularly given previous financial reports indicating a primary revenue stream from Starlink and concerns over xAI’s cash burn rates.
Criticism has emerged regarding Musk’s proposed dual-class share structure and the provision allowing him to retain veto power over any decision leading to his removal. Leaders from various pension funds voiced their concerns in a joint letter urging SpaceX to reconsider its governance structure.
The success of this IPO could hinge on the enthusiasm of retail investors, who could account for up to 30% of the shares sold. SpaceX plans to offer shares through various platforms including Charles Schwab, Fidelity, Robinhood Markets, and SoFi Technologies. Additionally, E*TRADE, affiliated with Morgan Stanley, is part of the selling group.
Another essential factor will be how index providers such as S&P Dow Jones and FTSE Russell respond to the IPO, particularly regarding any changes to rules about large IPOs entering key indexes. Funds tracking the S&P 500 must acquire newly added stocks, with approximately $24 trillion linked to that index.
The potential wave of mega-IPOs has led to a surge of interest from funds and platforms seeking to provide access to private shares, although the space is noted for its lack of transparency and regulatory oversight.
