SpaceX raising $75 billion in record-setting IPO as Nasdaq debut awaits

SpaceX is gearing up for a groundbreaking initial public offering (IPO), aiming to raise a staggering $75 billion. The company, founded by Elon Musk, plans to offer 555.6 million shares at a price of $135 each, according to a recent filing with the Securities and Exchange Commission. This monumental deal positions SpaceX with an impressive valuation of $1.77 trillion, making it the seventh most-valuable company in the United States and placing it ahead of Tesla, Musk's electric vehicle enterprise. The anticipated Nasdaq debut is set for Friday, marking a pivotal moment for investors eager to buy into the 24-year-old aerospace firm. However, investing in SpaceX at this valuation largely hinges on faith in Musk, as the company is currently facing significant cash burn and generates considerably less revenue than its trillion-dollar counterparts. In its prospectus, SpaceX reported a 15% revenue increase to $4.69 billion in the first quarter compared to $4.07 billion during the same period last year. The total revenue for the previous year surged by 33%, reaching $18.67 billion. Despite this growth, SpaceX posted a net loss of $4.28 billion in the latest quarter, following a loss of $4.94 billion in 2025. A significant portion of its revenue stems from the Starlink satellite internet service, which remains its only profitable division, alongside its burgeoning artificial intelligence segment, xAI, which merged with SpaceX earlier this year. The company's capital expenditures for the first quarter skyrocketed to $10.1 billion, more than double the figure from the previous year, with $7.7 billion allocated towards AI initiatives. Since its inception in 2002, SpaceX has accumulated a substantial deficit of approximately $41.3 billion and cautioned potential investors about the uncertainty of achieving profitability in the future. In a move to simplify the IPO process, SpaceX opted for a fixed share price of $135, foregoing the traditional range that allows companies to gauge market demand. This decision follows a series of pre-roadshow meetings that indicated strong interest. Goldman Sachs is spearheading the IPO as the lead underwriter, with support from Morgan Stanley, Bank of America, Citigroup, and JPMorgan Chase. Should the IPO succeed, Musk stands on the brink of becoming the world’s first trillionaire, with his stake in SpaceX valued at $866.5 billion, in addition to his Tesla holdings worth around $320 billion. Musk, who holds over 82% of SpaceX's voting power, maintains significant control over the board. In anticipation of the IPO, two Wall Street firms began coverage of SpaceX on Thursday. Oppenheimer issued an outperform rating with a price target of $190, suggesting a potential 40% increase from the IPO price. Analyst Timothy Horan highlighted the company's diverse portfolio as a major draw for investors, noting its unique position as the only fully integrated AI company equipped with the necessary resources and talent. Meanwhile, New Street Research set a price target of $165, estimating xAI's potential value at $575 billion, particularly in comparison to other industry giants like OpenAI and Anthropic. As SpaceX prepares for its record-setting IPO, it faces competition from these companies, which are also looking to go public after less than four years in the generative AI field. The coming months could bring significant shifts in the tech and space industries as these developments unfold.