Elon Musk’s SpaceX eyes $1.77tn valuation ahead of historic IPO | Technology News
SpaceX Aims for Historic IPO Valuation of $1.77 Trillion
Elon Musk’s aerospace company, SpaceX, is seeking a valuation of $1.77 trillion in its upcoming initial public offering (IPO), potentially making it the largest stock market debut in history.
In a filing with the U.S. Securities and Exchange Commission on Wednesday, SpaceX announced plans to sell 555.6 million shares at a price of $135 each, aiming to raise approximately $75 billion.
If successful, this valuation would position SpaceX as the world’s seventh-largest company by market capitalization, surpassing Musk’s electric vehicle manufacturer, Tesla, and social media conglomerate Meta, and placing it just behind Taiwanese chipmaker TSMC.
The proposed IPO would also exceed Saudi Aramco’s 2019 market debut, which raised $26 billion at a $1.7 trillion valuation.
Musk, who owns about 42 percent of SpaceX, could become the world’s first trillionaire following the company’s listing on the Nasdaq stock exchange, scheduled for June 12. Despite the public offering, Musk will maintain effective control over SpaceX, with more than 82 percent of voting rights due to a dual-class stock structure that allocates certain shares ten votes instead of one.
The decision to establish a specific share price ahead of the IPO is uncommon. Typically, companies announce a preliminary price range that is subject to adjustments based on investor interest. Fabien Yip, a market analyst with IG Group, noted that this strategy reflects Musk’s confidence in the offering.
Founded in 2002 by Musk, SpaceX is known for designing and launching rockets, spacecraft, and reusable launch systems for NASA and private enterprises. The company also provides internet services and artificial intelligence models through its Starlink and xAI divisions.
Musk has set ambitious goals for SpaceX, including plans to create a “self-sustaining” city on Mars and to advance humanity’s exploration of the universe. However, the IPO will serve as a litmus test for investor confidence in Musk’s vision, particularly given that the company has yet to achieve profitability.
In 2025, SpaceX reported a net loss of $4.9 billion on revenues of $18.7 billion, followed by a loss of $4.3 billion in the first quarter of this year.
Jay R. Ritter, an emeritus professor at the University of Florida specializing in IPOs, pointed out the differences between the SpaceX IPO and Saudi Aramco’s listing. He noted that Saudi Aramco has a solid track record of revenue and profitability, while SpaceX’s trailing annual revenue is less than $20 billion and it remains unprofitable.
“SpaceX’s valuation is based on potential rather than demonstrated profitability,” Ritter said, warning that a significant portion of its cash flow may be directed toward ambitious projects like sending people to Mars, potentially at a loss.
Despite these concerns, market sentiment appears to be strong. Yip observed that buyers of investment products linked to the IPO are pricing the company’s market capitalization at $2.2 trillion by the end of its first trading day.
He compared SpaceX’s situation to Tesla’s IPO in 2010, emphasizing that investors are betting on future growth. “SpaceX’s addressable market—rockets, satellite internet, AI—is considerably broader than Tesla’s was at its listing,” he added.
