Does SpaceX worth 1.75 trillion dollars?

SpaceX is preparing for a potential groundbreaking IPO that could rewrite the history of the capital markets, with a possible completion as early as June 2026. The company aims to raise up to $75 billion, with a potential valuation exceeding $1.75 trillion. However, whether this figure can stand firm in the public market remains a key question for investors.

According to Bloomberg on Thursday, SpaceX has selected several top Wall Street banks to assist with the IPO filing process, including Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley, all of which have confirmed their participation. If the fundraising target is achieved, this IPO would surpass Saudi Aramco’s 2019 record of $29.4 billion, becoming the largest stock offering in history.

SpaceX’s listing plans have become more complex following the all-stock acquisition of xAI completed in February this year. Currently, xAI spends about $1 billion per month on AI infrastructure, which is diluting the attractiveness of SpaceX’s core business—especially its satellite internet service Starlink. Meanwhile, Elon Musk seeks to maintain absolute control over the company through a dual-class share structure, further raising concerns among public market investors.

Why go public now?

Although SpaceX has generated substantial cash flow from its Starlink business, the company’s larger strategic goals require significantly more capital than it currently has. According to Bloomberg, an internal memo from December last year explicitly states that the IPO proceeds will be used for the continued development of Starship rockets, the construction of space AI data centers, and lunar base projects.

The integration of xAI has sharply increased funding needs. Insiders reveal that xAI’s monthly expenses for computing power and model training—around $1 billion—are making it difficult for SpaceX to sustain its private fundraising pace. Going public could allow SpaceX to gain a competitive advantage in AI funding before OpenAI and Anthropic complete their own IPOs.

Valuation: Support and Skepticism

The $1.75 trillion valuation target has sparked significant debate among analysts and investors.

Proponents argue that SpaceX’s business model is unique. According to PitchBook analysts, “The growth of Starlink users, dominance in the rocket launch market, and progress in building direct-to-phone networks form a one-of-a-kind commercial portfolio in the public markets.” SpaceX’s monopoly in commercial space, deep ties to defense and telecom sectors, and Elon Musk’s personal brand—Tesla’s stock has surged about 3,000% over the past decade—could be key factors attracting investors.

However, skepticism is also widespread. Analysts typically value companies based on future earnings, industry competition, and profit margins, but xAI’s ongoing losses are dragging down overall financial performance. Some investors worry that Musk might continue to funnel resources from SpaceX—its industry leader—into xAI, which faces fierce competition. If the market views SpaceX as a loosely structured conglomerate, its valuation premium could be significantly compressed.

xAI Acquisition: Opportunity or Burden?

The full stock acquisition of xAI before the IPO has upset some existing investors. Shareholders who bet on space exploration now find themselves exposed to substantial AI business risks; investors skeptical of AI face a high-stakes gamble.

Musk’s stance is quite different. He describes this cross-sector business empire—spanning rockets, space internet, AI, and social media—as a “vertically integrated innovation engine,” believing that synergies among these businesses will give space data centers a competitive edge in this emerging market.

But whether this narrative can persuade public market investors remains to be seen. After the IPO, SpaceX will be required to disclose quarterly financials, revealing the full extent of xAI’s losses to Wall Street.

Ownership and Control: Musk’s Moat

On the ownership front, Musk held less than 50% of SpaceX shares before the xAI acquisition, with multiple private funding rounds involving external investors such as Peter Thiel’s Founders Fund, Fidelity, and Alphabet. Post-xAI deal, Musk’s exact ownership stake remains unclear.

Bloomberg reports that SpaceX is exploring a dual-class share structure after the IPO to ensure that insiders—including Musk—maintain near-absolute control over strategic and governance decisions. For investors who trust Musk’s leadership and vision, this arrangement may not be a barrier; but in case of major missteps, the lack of checks and balances could pose significant risks.

IPO Timeline: Fast-Track to June

If all goes smoothly, SpaceX could go public as early as June 2026.

The process typically begins with filing a confidential registration statement with the U.S. Securities and Exchange Commission (SEC), which usually takes two to three months for review. After the review, the company will publicly disclose its prospectus and initiate a 15-day comment period. Following that, SpaceX will conduct roadshows with underwriters, collecting orders from institutional investors before setting the final offering price.

Retail investors may also participate. Users of platforms like Robinhood Markets and SoFi Technologies might be able to submit subscription orders directly, though retail allocations in high-profile IPOs are usually limited.

The five lead underwriters—Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley—have not yet detailed their specific roles, but given the unprecedented scale of this deal, Wall Street firms are eager to participate.