SpaceX Lowers IPO Target to $1.8T, Marketing Starts 4 June
SpaceX has cut its IPO valuation target to $1.8 trillion as marketing begins next week. The company will start pitching investors as soon as 4 June and could price the largest IPO in history by 11 June, after settling on a lower target than the $2 trillion-plus it initially sought.
Key Takeaways:
- Valuation Target: Down from $2 trillion-plus to at least $1.8 trillion.
- Marketing Start: 4 June, with pricing as early as 11 June.
- Revenue and Loss: Reported $18.7 billion in 2025 revenue but swung to a $4.94 billion loss after acquiring xAI.
- IPO Size: Aiming to raise as much as $75 billion, the largest IPO in history.
- Stock Exchange: Nasdaq and Nasdaq Texas (ticker: SPCX).
- Leading Banks: Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, JPMorgan, and 18 other banks.
Financial Details:
- Revenue Growth: Rose from $14 billion in 2024 to $18.7 billion in 2025.
- Acquisition Impact: February acquisition of xAI, including Grok chatbot and social media platform X, transformed SpaceX into an AI services and infrastructure company.
- Total Addressable Market: Estimated at $28.5 trillion.
Factors Influencing Valuation:
- Standard dynamics of IPO pricing based on investor feedback.
- Financial structure around Elon Musk, including a $20 billion bridge loan at 4.58%.
- Dual-class structure giving Musk roughly 79% of voting power despite owning approximately 42% of equity.
Context:
The valuation news arrived as Blue Origin suffered an explosion during a test flight, adding context to the market's scrutiny of high-profile IPOs.