SpaceX plans biggest stock market debut ever — and it could make Elon Musk world’s first trillionaire
New York — SpaceX has announced plans to launch the largest-ever stock market debut with a goal of raising up to $75 billion in its upcoming initial public offering. This move would catapult Elon Musk, the world’s richest person, towards becoming the first trillionaire.
The company, officially known as Space Exploration Technologies Corp., is set to offer 555,555,555 shares at $135 each in the IPO, according to a report by French news agency AFP. If successful, this offering would exceed the $26 billion raised by Saudi Aramco in 2019, giving SpaceX a market value of $1.77 trillion. Currently, only six companies in the S&P 500 are valued higher, with Nvidia leading the pack at $5.2 trillion.
In addition to the size of the offering and expected proceeds, SpaceX’s amended prospectus outlines Elon Musk’s control of the company. As the CEO, chief technical officer, and chairman of SpaceX, Musk’s voting power will primarily stem from his ownership of 5.22 billion Class B shares, each carrying 10 votes. This would give Musk 82.4% of the voting power within the company.
With Forbes currently valuing Musk’s net worth at $826 billion and his stake in SpaceX at $542 billion, a $1.77 trillion valuation for SpaceX could potentially elevate Musk to trillionaire status. However, much of Musk’s wealth is tied up in stock that he has yet to liquidate.
Despite the ambitious market debut, SpaceX is currently operating at a significant loss, with the company reporting a $2.6 billion loss from operations last year on $18.7 billion in revenue. The losses have continued into the current year as well.
SpaceX’s IPO filing outlines Musk’s grand visions for the company, including plans to establish a permanent human colony on Mars with at least one million inhabitants. The document also emphasizes the existential threats facing humanity and the need for space exploration to ensure our survival.
Aside from SpaceX, Musk is also driving ambitious plans for Tesla, aiming to transition the electric vehicle manufacturer into a producer of robotaxis and humanoid robots. Analysts speculate that Tesla and SpaceX could potentially merge in the coming year.
AI’s Crucial Role
Artificial intelligence is central to the success of both SpaceX and Tesla. SpaceX envisions potential AI revenue of up to $26.5 trillion, contingent on Musk’s goal of deploying data centers in space. While this technological feat is currently unattainable, SpaceX is exploring partnerships and acquisitions to bolster its AI capabilities.
SpaceX’s main AI product, the chatbot Grok, has received mixed reviews compared to industry peers like OpenAI and Anthropic. However, with strategic partnerships and acquisitions, SpaceX aims to solidify its position as a major player in the AI space.
The net proceeds from the IPO will fuel SpaceX’s expansion of AI and rocket infrastructure, as well as the enhancement of its satellite constellation powering Starlink Mobile.
SpaceX is poised to list on the Nasdaq under the symbol “SPCX” and could commence trading by the end of next week, marking a significant milestone in the company’s history.
Anticipated IPOs in AI Sector
Alongside SpaceX, the AI sector is bracing for colossal market debuts from companies like Anthropic and potentially OpenAI. These IPOs signify a shift in public markets, with Musk’s SpaceX paving the way for other AI giants to enter the fray.
