SpaceX files confidentially for IPO that could value company above $1tn

IPO Filing

SpaceX has made a confidential filing with the US Securities and Exchange Commission for an initial public offering, moving the company toward becoming one of the most valuable publicly traded businesses in the world.

The rocket and satellite company is currently privately held. If the listing goes ahead, its valuation is expected to surpass $1tn, making its stock market debut one of the most financially significant in history. Musk’s stake in the company would also put him on track to become the world’s first trillionaire.

According to reports from Bloomberg, Reuters and the New York Times, SpaceX is aiming to go public sometime in June. The company did not immediately comment.

Next Steps

A confidential IPO filing allows a company to seek feedback from regulators without immediately disclosing full details to the public. The next step is expected to involve roadshows, in which executives meet major investors to encourage them to buy shares.

Reports said SpaceX is seeking to raise $50bn or more through the offering.

Earlier this year, SpaceX took over xAI, Musk’s artificial intelligence venture, in an all-stock merger that reportedly gave the combined business an internal valuation of $1.25tn, making it the world’s most valuable private company.

Musk’s Broader Strategy

Musk’s companies have become increasingly intertwined. Last year, xAI took over X, the social media platform formerly known as Twitter, which Musk bought in 2022.

Emily Zheng, a senior analyst at Pitchbook, previously told the BBC that bringing xAI under SpaceX could help Musk show potential investors that he was consolidating costs and sharing resources across his companies. She said SpaceX’s large ambitions also meant it needed the kind of major cash infusion that public markets can provide, especially given the costs of compute, infrastructure and energy needed for expansion.

Earlier this year, Tesla disclosed that it had invested more than $2bn in xAI. Musk has also said a significant share of Tesla’s manufacturing would shift toward building robots using xAI technology such as Grok, which is already included in some Teslas as an AI assistant. SpaceX is also expected to partner with Tesla and xAI in Musk’s chipmaking project, Terafab.

Company Ambitions

Musk founded SpaceX in 2002 with the aim of lowering the cost of space launches, in part by developing reusable rockets. The company first secured a contract with Nasa in 2006.

Today, SpaceX’s work is still centered on rockets and on operating Starlink, its satellite network that provides internet connectivity around the world. Musk has also spoken about broader ambitions, including placing AI data centers in space and building a self-sufficient city on Mars, though many experts have said those goals may be impossible to achieve.