SpaceX’s IPO Could Make Musk a Trillionaire

Elon Musk’s SpaceX has initiated the process to go public, which might turn out to be the largest initial public offering (IPO) ever and could potentially make Musk the first trillionaire.

On Wednesday, Musk, who is already the wealthiest individual globally, submitted paperwork to the Securities and Exchange Commission (SEC) for SpaceX’s IPO. The company estimates that this IPO could value it at around $1.75 trillion, significantly exceeding the previous record of $25.6 billion held by Saudi Aramco.

In its filing, SpaceX mentioned, “We believe we have identified the largest actionable total addressable market (TAM) in human history. Our quantifiable TAM is estimated to be 28.5 trillion.” This suggests a very ambitious perspective on the company’s growth potential.

Reports indicate that Musk will hold 42% of SpaceX’s shares post-IPO. Additionally, he will continue as the CEO, Chief Technology Officer (CTO), and chairman, maintaining over 85% of the voting power due to a dual-class structure. If the IPO reaches the expected value, Musk’s net worth could surpass a trillion dollars—a first in history. Currently, he has an estimated worth of $811 billion, according to Forbes.

The trading debut is set for June 12, with shares being listed under the Nasdaq ticker ‘SPCX,’ as per Reuters.

SpaceX didn’t immediately respond to requests for comment regarding this development.

The IPO document lays out the company’s financials, including revenue, budget, and future initiatives. SpaceX also owns notable ventures like Starlink and xAI, which are significant components of the IPO. However, despite its projected value, the company reported a loss of $4.94 billion in the last quarter, according to the filing.

SpaceX’s filing further states, “We believe we are capable of unlocking an era of unprecedented economic expansion while also safeguarding humanity’s future against existential threats.”

Investors like Ron Baron, founder of Baron Capital, mentioned in a CNBC interview on May 12 that potential investors should consider acquiring shares in SpaceX, as he believes it will become the largest company on the planet.

Currently, SpaceX’s revenue is primarily driven by Starlink, Musk’s satellite internet service, as noted by CNBC.

Musk, apart from SpaceX, is also at the helm of several other companies including Neuralink, which is focused on brain-computer interfaces, as well as owning X (formerly Twitter), Tesla, and the Boring Company, which seeks to alleviate traffic through underground solutions.