SpaceX files for $1.75 trillion IPO, targeting record-breaking market valuation

Elon Musk’s SpaceX has formally filed its S-1 registration statement with the US Securities and Exchange Commission, initiating the process for what could be the largest initial public offering in history. The aerospace and technology conglomerate aims for a valuation of approximately $1.75 trillion and plans to raise more than $75 billion through the sale. The listing is expected on the Nasdaq under the ticker symbol ‘SPCX’, potentially as early as June 11, with trading anticipated to begin the following day.

The proposed sale would eclipse Saudi Aramco’s 2019 record, which debuted at a value of $1.7 trillion, and cement SpaceX as one of the world’s most valuable publicly traded companies. It marks the second time a company founded by Musk has surpassed a $1 trillion market value, following Tesla. The filing highlights a significant strategic pivot, with the company disclosing a potential total addressable market of $28.5 trillion across its businesses, the majority of which is tied to artificial intelligence and space data centres.

While SpaceX generated $18.67 billion in revenue last year, primarily from its Starlink satellite internet network, the regulatory disclosure indicates that future growth hinges on AI-related ventures. The company has merged with Musk’s xAI unit, valuing the AI developer at $250 billion, although the unit remains unprofitable. The filing shows that while Starlink provides the current revenue base, long-term prospects centre around AI and related infrastructure operations that are currently losing money.

Musk’s compensation structure is closely tied to audacious targets outlined in the filing, including establishing a permanent human colony on Mars and building space data centres with compute capacity equivalent to 100 terawatts. The board has granted Musk control over the company, but analysts note that his celebrity persona may weigh heavily on investor sentiment given the lack of comparable benchmarks for such a valuation. Concerns about Musk’s ability to manage multiple companies with combined market values exceeding trillions could also impact investor confidence.

Major financial institutions, including Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JP Morgan, are acting as bookrunners for the offering. SpaceX plans to earmark a significant portion of shares for retail investors. The regulatory disclosure coincides with a critical week for the rocket maker, which is preparing for a test flight of its next-generation Starship rocket, now expected later this week. The success of this launch is vital for Musk’s plans regarding lunar and Mars missions and the expansion of the Starlink network.