SpaceX has accelerated its timeline for one of the most anticipated IPOs in corporate history, aiming to raise up to $75 billion at a staggering $1.75 trillion valuation. The IPO is expected to price as soon as June 11, with trading on the Nasdaq set to begin the following day under the ticker SPCX. This move would surpass the record set by Saudi Aramco in 2019, making it the largest IPO ever.
Dominance in the Space Industry
Since its founding in 2002, SpaceX has become the undisputed leader in the space industry, accounting for more than 80% of global rocket launches last year. The company currently operates over 10,000 Starlink satellites, providing space-based internet connections to businesses and militaries worldwide. SpaceX is also a key contractor for NASA and the Pentagon, including projects like President Donald Trump’s proposed 'Golden Dome' missile-defense shield.
'It’s a truly unique business with the deepest moat that exists today,' said one investor. 'This company launches over 90% of Western payload into space each year.'
Governance Concerns
While investors applaud SpaceX’s market dominance, concerns have emerged over its proposed governance structure, which would grant Elon Musk nearly unchecked executive power. Under the plan, Musk would hold super-voting Class B shares and could only be removed as CEO by himself. The structure also includes ambitious milestones tied to Musk’s compensation, such as awarding him 200 million shares if SpaceX achieves a $7.5 trillion valuation and establishes a colony on Mars with 1 million inhabitants.
Some U.S. public pension systems have objected to the governance proposal, calling it 'the most management-favorable governance structure ever brought to the U.S. public markets at this scale.' However, many investors remain supportive of Musk’s vision, citing his track record of turning ambitious goals into reality.
Financial Performance
SpaceX reported $18.7 billion in revenue last year, a 30% increase, but swung to a $4.9 billion loss due to deepening losses at its AI subsidiary, xAI. Meanwhile, Starlink more than doubled its profit to $4.4 billion. The company’s financial outlook could become more complex following a recent agreement to acquire AI coding start-up Cursor for $60 billion.