SpaceX is reportedly preparing for a public offering that could raise over $25 billion and value the private aerospace firm at more than $1 trillion, according to a person familiar with the matter who spoke to Reuters. The initial public offering (IPO) could take place as early as June.
The potential IPO was welcomed by investors, many of whom have waited years for a chance to invest in the Elon Musk-founded firm. SpaceX designs and launches rockets and satellites and has become a dominant player in the commercial space sector, notably through its Starlink internet satellite network and launch services.
Though the aerospace industry is high-risk and capital-intensive, investor interest is expected to be significant. “The demand for shares from retail investors will be ‘substantial,’” Shay Boloor, chief market strategist at Futurum Equities Research, said in an interview with Yahoo Finance. Boloor added, “It’s going to be the craziest IPO in the history of the stock market. If it’s trying to go for $1.5 trillion, I wouldn’t be surprised if it goes up to over $2 trillion once it gets open.”
Elon Musk serves as CEO, chief designer, and founder of SpaceX. Among the five companies he currently runs—including The Boring Company, xAI, and Tesla—SpaceX remains private, while Tesla is the only one publicly traded.
Musk has often drawn attention for his unorthodox leadership style and confrontations with regulators. In 2018, he tweeted that he had “funding secured” to take Tesla private, leading the U.S. Securities and Exchange Commission (SEC) to strip him of his board chairmanship and restrict his social media use. Later, he referred to SEC officials as “bastards.”
This year, Musk reportedly threatened to leave Tesla if the board did not approve a 10-year, $1 trillion compensation package. Tesla’s stock and sales later declined during his four-month service as head of the Trump administration’s Department of Government Efficiency.
Despite these controversies, analysts say Musk’s leadership is viewed by investors as a trade-off between innovation and risk. “The risks and drama an innovative CEO like Musk brings to a company are part and parcel of being an investor in these types of companies, the reward has to compensate holders for the risk,” said Christopher Marangi, co-chief investment officer at GAMCO Investors, during an interview with Yahoo Finance.
GAMCO has indirect exposure to SpaceX through EchoStar, which acquired shares in the company in a spectrum agreement in September. While noting that it is “too speculative” to commit to a future IPO investment in SpaceX, Marangi said, “Conceptually we would be excited for the prospect of space-oriented companies,” adding that GAMCO also owns a stake in satellite operator Telesat.
