Key facts
- SpaceX has set an initial public offering price of $135 per share.
- SpaceX is targeting a valuation of $1.75 trillion to $1.77 trillion for its IPO.
- The company aims to raise $75 billion through its IPO.
- SpaceX plans to sell 555.6 million shares in its IPO.
- The investor roadshow for SpaceX's IPO begins Thursday.
- SpaceX's IPO pricing is expected on June 11, with trading to start June 12 on Nasdaq.
- Morningstar estimates SpaceX's value at $780 billion.
- SpaceX reported a $4.95 billion net loss last year.
- SpaceX's IPO filing reveals plans for employee share allocations.
- Speculation exists about a potential $60 billion acquisition of AI firm Cursor by SpaceX.
- SpaceX secured tax incentives for its Terafab chip manufacturing project in Grimes County, Texas.
- The Terafab project involves an initial investment of $55 billion, potentially reaching $119 billion.
SpaceX is poised to launch one of the largest initial public offerings in history, setting an IPO price of $135 per share and targeting a valuation of $1.75 trillion to $1.77 trillion. The company aims to raise approximately $75 billion through the sale of 555.6 million shares, with the investor roadshow commencing and pricing expected around June 11, followed by trading on Nasdaq on June 12. This valuation would position SpaceX as the seventh-largest U.S. company. Investor demand has been described as 'insatiable,' with major banks like Bank of America, JPMorgan, and Morgan Stanley hosting pre-IPO investor events. SpaceX President Gwynne Shotwell and CFO Bret Johnsen are expected to participate in these events.
Despite strong demand, the proposed valuation has drawn scrutiny from some analysts. Morningstar analyst Nicholas Owens estimates SpaceX's value at a significantly lower $780 billion, highlighting the company's $4.95 billion net loss last year, even with strong revenue growth from its Starlink division. Wedbush Securities analyst Dan Ives views the IPO as an investment in Elon Musk and suggests a potential Tesla-SpaceX merger could occur in 2027, noting that the current valuation leaves "little room for error" for investors. The IPO filing also details potential future equity issuances, including employee share allocations and special share programs for insiders, fueling speculation about a $60 billion acquisition of AI coding assistant Cursor and a historic merger with Tesla. A potential SpaceX-Tesla merger could create a $3.4 trillion entity, with SpaceX valued at $1.75 trillion and Tesla at $1.65 trillion, though the financial logic faces scrutiny due to SpaceX issuing new shares to absorb Tesla and Tesla's declining earnings.
SpaceX's amended IPO filing also highlights water access as a risk factor due to the company's increasing need for water to expand its data centers. Furthermore, the IPO will exclude investors from China and Hong Kong due to regulatory and compliance concerns related to U.S. critical technology export restrictions. In parallel, SpaceX secured significant tax incentives for its Terafab chip manufacturing project in Grimes County, Texas, involving an initial investment of $55 billion, potentially reaching $119 billion. The company is also exploring a new venture in in-space manufacturing and construction, with the FAA approving test flights for its reentry vehicles. SpaceX has also detailed its ambitious plan to establish a self-sustaining civilization on Mars.
Other companies in the space and technology sectors are also pursuing public offerings. AI firm Anthropic has confidentially filed for a U.S. IPO, potentially valuing it at over $1 trillion, intensifying competition with OpenAI, which is also preparing for a public debut. Quantum computing company Quantinuum has increased its IPO target to $1.6 billion, offering 26.5 million shares at $53-$55 each, with an approximate post-IPO valuation of $13 billion. Impulse Space, founded by SpaceX's first employee Tom Mueller, raised $500 million at a $4.26 billion valuation. Apex Space raised over $200 million, doubling its valuation to $2.3 billion. Lila Sciences, an AI research startup, is reportedly in talks to raise approximately $2 billion at an $8.5 billion valuation. Meanwhile, Ray Dalio warns investors about the risks of AI stock bubbles, and Steve Parish of ICR will discuss SpaceX and Anthropic at the New York Stock Exchange.