Elon Musk's SpaceX eyes $2 trillion valuation ahead of mega IPO

SpaceX boosted its target IPO valuation above $2 trillion, according to people familiar with the matter, as the world’s most valuable startup gears up to pitch potentially the biggest-ever market debut.

Billionaire Elon Musk’s rocket, satellite and AI company and its advisers are floating the figure to prospective investors in its initial public offering, the people said, ahead of meetings in the coming weeks. The so-called testing-the-waters briefings would likely include more detail that would support the valuation, Bloomberg News has reported.

At more than $2 trillion, SpaceX’s valuation would increase by nearly two thirds in a matter of months. The company’s acquisition of Musk’s xAI valued the combined company at $1.25 trillion, Bloomberg News reported in February.

It would also be bigger than all but five of the companies in the S&P 500 Index — Nvidia Corp., Apple Inc., Alphabet Inc., Microsoft Corp. and Amazon.com Inc. It would be larger by that metric than Meta Platforms Inc. and Musk’s own Tesla Inc., the two other members of the so-called Magnificent 7 stocks.

SpaceX has filed confidentially for an IPO that could take place in June, Bloomberg News reported Wednesday. The listing would make SpaceX the first of a potential trio of mega-IPOs, followed by OpenAI and Anthropic PBC, whose chatbots are rivals to SpaceX subsidiary xAI’s Grok.

Deliberations are ongoing and details of the offering could still change, the people said, asking not to be identified as the information isn’t public. A representative for SpaceX didn’t immediately respond to a request for comment.

What Bloomberg Intelligence Says:

SpaceX leads launch and low-earth orbit communication/broadband offerings, with the xAI merger and planned IPO supporting investment in larger launch vehicles and data centers in space. Launch and Starlink still generate the majority of revenue, approaching $20 billion in 2026 as xAI is likely to garner less than $1 billion. Launch and Starlink are peer leaders with significant distance from rivals.

— George Ferguson and Wayne Sanders, analysts

A listing for SpaceX would raise as much as $75 billion, Bloomberg News has reported. At that size, it would dwarf the biggest ever IPO, Saudi Aramco’s $29 billion debut in 2019. The company would use the funds to fund Musk’s vision of AI data centers in space and a factory on the moon.

The billionaire’s grand plans will require unprecedented amounts of capital, and resources that span several of the companies he controls. Musk said in March that his Terafab project, which would eventually manufacture his own chips for robotics, AI and space data centers, will be jointly run by Tesla and SpaceX.

SpaceX has picked Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley for senior roles on the IPO, people familiar with the matter have said, and has added more banks to the lineup.

The company has lined up a call with the broader bank syndicate on Monday, and there will be an analyst briefing later in April, a person familiar with the matter said. IFR and Reuters previously reported the syndicate call and analyst briefing respectively.

Disclaimer: This report is auto generated from the Bloomberg news service. ThePrint holds no responsibility for its content.