Elon Musk's SpaceX eyes more than $2 trillion valuation in likely record-breaking IPO: Report

Billionaire Elon Musk's SpaceX is aiming for an IPO valuation exceeding $2 trillion, Bloomberg News reported today, citing people familiar with the development. The target sets the stage for what could become the biggest-ever market debut.

The rocket, satellite and AI company, along with its advisers, is floating the figure to prospective investors in its initial public offering, Bloomberg News reported. The deliberations are ongoing, and details of the offering could still change, the report said.

SpaceX, which is also the parent firm of artificial intelligence startup xAI, took the confidential route to submit its draft IPO paperwork with the US Securities and Exchange Commission on Wednesday, and is targeting a market debut later this year. If it goes through, this will become a record-breaking listing, beating Saudi Aramco's debut in 2019.

Bloomberg News reported earlier that SpaceX's draft IPO filing sets the company on course for a June listing, positioning it ahead of AI rivals such as Anthropic PBC and OpenAI.

SpaceX’s boosted valuation could make it one of the most valued businesses

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.

If the company achieves a $2 trillion valuation, it would surpass all but five of the companies in the S&P 500 Index — Nvidia, Apple, Alphabet, Microsoft, and Amazon. By that measure, it would be larger than Meta Platforms and Musk’s own company, Tesla.

According to the agency report, the company would use the proceeds from the public offering to fund Musk’s vision of AI data centres in space and a factory on the moon.

The tech billionaire’s plans will require significant capital and resources that span several of the companies he controls. He also said in March that his Terafab project will be jointly run by Tesla and SpaceX, Bloomberg News reported. The project would also eventually manufacture his own chips for robotics, AI and space data centres, he added.

Who is tapped to handle the IPO?

SpaceX has picked Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase & Co. and Morgan Stanley for senior roles on the IPO, and has added more banks to the lineup, the agency reported.

The company has lined up a call with the broader bank syndicate for Monday, and an analyst briefing is scheduled for later in April, according to media reports.

SpaceX is also considering a dual-class share structure that could give insiders, such as Musk, extra voting power to dominate decision-making, Bloomberg News reported earlier.

(With inputs from Bloomberg)