SpaceX’s Upcoming IPO and Elon Musk’s Control
SpaceX’s recent IPO filing sheds light on Elon Musk’s significant control over his ventures, alongside the company’s substantial losses and a stock market debut that could redefine wealth rankings.
The Texas-based firm has applied to trade on the Nasdaq next month under the ticker SPCX, aiming for what would be the largest IPO ever, valued at around $1.5 trillion.
SpaceX’s operations are extensive, covering AI firm xAI, satellite internet service Starlink, and the social media platform X. However, the company’s financial health appears shaky, having incurred considerable losses in recent years, as detailed by various financial reports.
Last year, SpaceX reported losses of $4.9 billion against revenues of $18.7 billion. This trend seems to be worsening, particularly as xAI struggles with rising data center costs.
For instance, the first quarter of 2026 showed a loss of $4.3 billion on $4.7 billion in revenue, according to a recent securities filing. Additionally, SpaceX has entered a deal with competitor Anthropic to lease two data centers for $15 billion annually until May 2029.
The previous year’s capital expenditures totaled $20.7 billion, with $12.7 billion allocated to xAI and the rest directed toward SpaceX’s launch and satellite divisions.
Musk, who is currently recognized as the world’s richest person with a net worth of $807.5 billion, maintains a firm grip on his tech empire, including SpaceX. He holds about 85% of the company’s voting power and is the principal shareholder, possessing a large number of Class B shares, which carry ten votes for every one vote from Class A shares.
Interestingly, Musk stands to gain an unprecedented $1 trillion from Tesla if certain stringent criteria are met. Similar ambitious targets exist at SpaceX, offering substantial rewards if accomplished.
This January, Musk was awarded a package of 1 billion Class B shares, contingent on establishing a “permanent human colony on Mars with at least 1 million people.” Other performance targets include reaching a market capitalization of $7.5 trillion and developing “non-Earth-based data centers.”
The board of SpaceX consists largely of Musk’s supporters, though several independent directors have a long history as investors in his various enterprises.
Notably, Musk’s ventures appear to share a close relationship. He has expressed intentions to explore further strategic collaborations with Tesla moving forward.
In tangible terms, last year saw SpaceX purchase $131 million worth of Cybertrucks from Tesla, not to mention $506 million in MegaPack energy storage products. Furthermore, from early 2024 to February, xAI paid Tesla approximately $731 million.
They are collaborating on a chip factory named Terafab and an AI-focused software initiative called Macrohard.
Moreover, federal agencies like NASA and the Department of Defense significantly contribute to SpaceX’s revenue, accounting for about 20% of its income. The National Reconnaissance Office, focusing on space intelligence, is also among the company’s customers.
SpaceX’s IPO aims to surpass the record set by Saudi Aramco’s 2019 offering, which raised $26 billion. Officials predict that SpaceX could secure at least $80 billion during its stock sale, anticipated around June 12.
While the proposal does not disclose specific stock pricing or initial valuation, Musk and key investors are pledged not to sell their shares for 366 days post-trading, while pre-IPO investors will face a 180-day lockup but may opt for an early release.
