SpaceX, the aerospace company led by Tesla CEO Elon Musk, is set to launch its initial public offering process as early as next month.
Bloomberg reported on Thursday that SpaceX could file a confidential IPO registration with the U.S. Securities and Exchange Commission as early as March. The company, which recently acquired AI startup xAI under Musk's direction, is seeking a valuation of $1.75 trillion through the offering. This represents a $500 billion increase from the $1.25 trillion valuation estimated by major news outlets when SpaceX decided to make xAI a wholly owned subsidiary on March 2.
If SpaceX completes the IPO at this valuation, it would immediately rank among the world's most valuable companies, alongside Nvidia, Alphabet, Apple, Microsoft, and Amazon. SpaceX derives 50% to 70% of its revenue from Starlink, its satellite-based internet service. The company reported approximately $15 billion to $16 billion in revenue and $8 billion in profit last year.
SpaceX is expected to raise up to $50 billion through the IPO. This would surpass the previous record of $29 billion set by Saudi Aramco in 2019. The company has stated it will use the funds for its Starship spacecraft, AI data center construction, and lunar base development projects. However, Wall Street analysts suggest Musk may allocate a significant portion of the proceeds to Grok, xAI's AI model, given the long-term nature of the other projects.
SpaceX is targeting a June listing, the month of Musk's birth. Bank of America, Goldman Sachs, JPMorgan, and Morgan Stanley are being considered as underwriters.