Why the SpaceX IPO is the talk of Wall Street and beyond

Elon Musk's venture, SpaceX, is set to make waves on the US-based Nasdaq with an initial public offering (IPO) that anticipates significant investor interest.

Here’s a detailed overview of the upcoming IPO:

What is SpaceX?

Established in 2002 by Musk, who is currently the world's richest individual, SpaceX has gained recognition for its innovations in rocket and spacecraft design, as well as the development of reusable launch vehicles.

The company has been collaborating with NASA since 2006 to deliver both cargo and crew to the International Space Station (ISS).

Headquartered in Texas, SpaceX has also provided launch services for numerous private-sector clients and satellites.

In addition to its aerospace endeavors, SpaceX operates internet services and artificial intelligence initiatives through its distinct divisions, Starlink and xAI.

What is an IPO?

An IPO represents the initial occasion a private company offers its shares to the public, thus allowing investors to acquire partial ownership in the firm.

Often referred to as "going public," this process enables the company to be listed on a stock exchange—in this case, NASDAQ under the ticker symbol "SPCX," which also hosts major corporations like Nvidia, Apple, and Microsoft.

While SpaceX has yet to officially announce its public debut date, various media sources indicate that it may occur as soon as June.

After the IPO, the general public will gain the ability to trade SpaceX shares on the stock exchange.

Investors will also have voting rights during the company's annual general meetings, where they can elect directors and express concerns regarding corporate strategies.

Companies pursue an IPO for a variety of reasons, primarily to generate capital for growth and expansion. Consequently, they are required to provide their financial statements to regulatory bodies, such as the United States Securities and Exchange Commission (SEC).

Why is the SpaceX IPO such a big deal?

This IPO is anticipated to be the largest of all time, with projections suggesting it may elevate Musk to the status of the world's first trillionaire.

According to reports, SpaceX aims to raise over $80 billion, targeting a market valuation between $1.75 trillion and $2 trillion.

A consortium of twenty-three major financial institutions, including Goldman Sachs, Morgan Stanley, Citigroup, JP Morgan, and BofA Securities, are backing this IPO.

This event is expected to attract global attention as a pivotal moment for the emerging private space sector, as noted by Gary Ng, senior economist for Asia Pacific at French investment bank Natixis.

"The SpaceX IPO represents a landmark deal for the burgeoning space economy," Ng stated to Al Jazeera.

"If SpaceX continues to excel with reusable rockets, it could significantly lower costs and create new supply chain opportunities," he added.

"However, the challenge lies in maintaining technological breakthroughs and successfully commercializing products and services," Ng cautioned.

"For investors, whether based in Asia or the US, this is a compelling topic that may divert their liquidity from other investment avenues."

How will it compare with past IPOs?

Should everything proceed as planned, the SpaceX IPO could potentially generate more than three times the current record of $25.6 billion set by Saudi Aramco, the largest oil company in the world, during its 2019 IPO.

Other notable IPOs include Uber, which raised $8.1 billion in 2019, Alibaba at $15 billion in 2014, and Facebook, which garnered $12 billion in 2012.

Prominent AI companies such as Anthropic and OpenAI are also expected to raise substantial amounts when they go public later this year.

What sets the SpaceX IPO apart from others is the level of control it allows Musk post-IPO.

After the IPO, Musk will hold 85 percent of the voting rights, facilitated through a dual-class share structure that allocates ten votes per some shares, compared to the standard one.

This level of control surpasses that held by founders of other major companies; Meta's Mark Zuckerberg controls approximately 61 percent of the votes, while Warren Buffett of Berkshire Hathaway retains around 35 percent.

What did SpaceX's SEC filing reveal about the company?

The company’s prospectus outlines an ambitious vision to "make life multiplanetary" and establish a human settlement on Mars.

Musk has articulated his aspirations for a "self-sustaining" city on Mars and aims to employ SpaceX to explore the "true nature of the universe" and extend "the light of consciousness to the stars."

Additionally, the SEC filing provides potential investors with insights into SpaceX's financial status.

In 2025, SpaceX reported revenues of $18.6 billion, an increase from $14 billion the prior year, though it also recorded a net loss of $4.9 billion.

During the first quarter of this year, the firm generated $4.7 billion in revenue, but incurred a net loss of $4.3 billion.

Analysts have attributed some of these losses to SpaceX’s acquisition of xAI in 2025.

The prospectus acknowledges these obstacles, indicating that "acquisitions, divestitures, or other strategic transactions we pursue may not achieve the anticipated benefits."