According to the Bloomberg Billionaires Index, at an issue price of $135, Musk's net worth would reach $988 billion, placing him just shy of becoming the world's first trillionaire. A mere 2.2% increase in the share price—to $138—would mark this historic milestone.
SpaceX will officially begin trading on June 12, offering 555.6 million shares and raising USD 75 billion.
According to a filing submitted to the U.S. Securities and Exchange Commission on Wednesday, SpaceX plans to offer approximately 555.6 million shares at USD 135 per share, implying a market valuation of nearly USD 1.77 trillion.
Trading of the shares is expected to commence on June 11, with listing on both Nasdaq and Nasdaq Texas under the ticker symbol "SPCX" the following day.
Following this IPO, Elon Musk will retain approximately 84.4% of the voting power, maintaining absolute control over the company.
According to the Bloomberg Billionaires Index, at an issue price of $135, Musk's net worth would reach $988 billion, placing him just shy of becoming the world's first trillionaire. A mere 2.2% increase in the share price—to $138—would mark this historic milestone.
However, SpaceX's listing has not been without controversy. Morningstar, a research firm, considers the company "significantly overvalued," estimating its intrinsic value at around USD 780 billion based on a discounted cash flow model—less than half of the IPO’s implied valuation.
Largest IPO in History: Surpassing Saudi Aramco by a Wide Margin
With a fundraising target of USD 75 billion, this offering will easily surpass Saudi Aramco’s record-setting USD 29.9 billion IPO in 2019, making it the largest initial public offering in global history.
SpaceX has opted for a fixed offering price rather than the typical U.S. practice of first announcing a price range and then determining the final price through a book-building roadshow—a method rarely seen in the U.S. market but more common in Asia and Europe.
Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JPMorgan are serving as joint lead underwriters, with an additional 18 banks participating in the offering, encompassing virtually all major global investment banks.
SpaceX’s listing is also expected to pave the way for IPOs by OpenAI and Anthropic. Both companies intend to go public this year, each targeting fundraising amounts in the tens of billions of dollars.
Christina Minnis of Goldman Sachs recently stated at the Bloomberg Global Credit Forum that the boom in AI investment is a "fundamental, generational" phenomenon that is driving markets and permeating the broader economy.
Revenue surges while net losses widen; business model yet to be validated
SpaceX's financial data presents a stark duality, posing certain challenges for investors.
According to its prospectus, the company generated $18.7 billion in revenue last year, a significant increase from $14 billion in 2024, but its net loss widened to $4.94 billion from a net profit of $791 million in 2024.
The company plans to use proceeds from its IPO to expand its AI business, rocket launches, and satellite infrastructure.
Per the prospectus, SpaceX must also, within six months of its listing, use a combination of debt financing and IPO proceeds to repay at least part of a $20 billion bridge loan, which was previously used primarily to refinance high-yield junk bonds issued by Elon Musk’s social media and AI companies.
Regarding cash flow pressures, the filing discloses that SpaceX has signed a contract with Anthropic to provide AI computing services worth $1.25 billion per month, which is expected to partially alleviate funding requirements for its AI operations.
Either party may terminate the agreement with 90 days’ notice. On May 28, Musk stated on X that SpaceX has not committed to a multi-year lease but that continuation is "possible."
The prospectus also indicates that SpaceX estimates its total addressable market at $28.5 trillion, with AI infrastructure representing a core opportunity—including the construction of space-based data centers.
Governance structure sparks controversy as Musk retains firm control
SpaceX's equity structure grants Elon Musk near-absolute control.
Musk controls 84.4% of the voting power through his ownership of Class B shares (each carrying 10 votes, compared to 1 vote per Class A share), holds 93.6% of all Class B shares, and thereby commands sufficient voting power to determine 51% of board seats and block any resolution seeking to remove him from his leadership position.
On May 26, the nonprofit coalition Alliance to Protect Shareholder Value issued a statement criticizing SpaceX’s governance policies as "seeking to severely undermine shareholder protections in novel and reckless ways while granting SpaceX’s leadership nearly total executive authority."
In terms of shareholder structure, Valor Equity Partners will remain the second-largest disclosed shareholder, holding 6.7% of Class A shares.
Antonio Gracias, founder of Valor and a long-time ally of Musk, serves on SpaceX’s board of directors and has supported the rocket company for over a decade.
Morningstar warns that high valuations carry significant downside risk.
Despite strong market enthusiasm for SpaceX’s IPO, analysts at Morningstar have offered a more cautious assessment.
Morningstar notes that the potential profitability of SpaceX’s xAI division spans multiple scenarios and that its 'economic moat is unclear,' viewing it as a 'material value-destruction threat' to the company.
Based on a discounted cash flow model, Morningstar assigns a valuation of $780 billion—approximately 48% below SpaceX’s reported IPO target valuation of roughly $1.75 trillion.
However, Morningstar also acknowledges that several factors could support a relatively firm share price in the short term following the IPO, including limited initial float, participation by virtually every major global investment bank in the underwriting syndicate, and heightened investor enthusiasm for AI infrastructure.
Moreover, SpaceX is expected to be added to the Nasdaq-100 Index just 15 trading days after its listing—a pace unprecedented in history.
Morningstar stated that even so, investors may have an opportunity to enter at a more attractive price following the IPO.
Editor/Liam