Musk's SpaceX lowers IPO valuation
What's the story
SpaceX, Elon Musk's rocket and artificial intelligence company, has revised its initial public offering (IPO) valuation target to at least $1.8 trillion. The change comes after the firm initially targeted a valuation above $2 trillion in April, Bloomberg reported. The adjustment was made following consultations with advisers and investors, who are not publicly identified due to the confidential nature of the information.
IPO details
SpaceX's IPO and AI ambitions
SpaceX is looking to raise up to $75 billion through its IPO, which would be the largest in history. The company's pitch to investors highlights its evolution from a focus on reusable rockets and profitable satellite internet services to becoming an AI services and infrastructure giant. The firm envisions orbital data centers and aims to tap into a total addressable market worth $28.5 trillion.
Timeline
Timeline for IPO marketing and potential delays
SpaceX is expected to start formal marketing of its IPO as soon as June 4, with pricing as early as June 11. However, this timeline could be delayed by a few days. The company may also consider increasing its target valuation based on investor feedback during the marketing process.
Financials
Financial performance and xAI acquisition
In 2025, SpaceX reported $18.7 billion in revenue, up from $14 billion the previous year. However, it also reported a loss of $4.94 billion last year after posting a profit of $791 million in 2024. In February, the company announced its acquisition of Elon Musk's xAI (which houses the Grok chatbot and social media platform X). At that time, this deal valued SpaceX at $1 trillion and xAI at $250 billion.
Underwriters
SpaceX's path to going public
Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JPMorgan are leading SpaceX's IPO along with 18 other banks. The company, officially known as Space Exploration Technologies Corp., plans to debut on NASDAQ and NASDAQ Texas under the symbol SPCX. This move would mark another major milestone in Musk's ambitious space exploration endeavors.