IPO Plans

SpaceX announced plans for an initial public offering (IPO) that would value the company at roughly $1.5T, per Bloomberg.

Context

The Wall Street Journal reported last week that SpaceX was preparing to sell shares at a valuation of $800B, an amount that would make it the world's most valuable private company.

CEO and founder Elon Musk denied those reports, however, tech outlet The Information reported hours later that SpaceX was preparing for a 2026 IPO, which may be the biggest of a US-based company in decades.

Market Debut

Bloomberg reported on Tuesday that SpaceX is targeting an IPO as soon as mid-to-late 2026. The company is aiming for a valuation of $1.5T, which could make it the largest debut in history.

The company is also conducting a separate stock sale that values SpaceX at $800B – double  its most recent valuation of $400B. The current offering enables employees to offload about $2B in stock, some of which the company will buy back.

Business Drivers

Much of SpaceX's rising valuation stems from its fast-growing Starlink satellite internet business. The company projects that Starlink will drive the majority of its sales in 2026, with revenue expected to reach between $22B and $24B.

The company intends to invest IPO proceeds in building data centers in space and continuing development of Starship, its rocket designed for lunar and Mars travel.

Market Position

If SpaceX were to IPO at the targeted $1.5T valuation today, it would immediately become the world’s 10th most valuable company, ahead of Tesla ($1.48T) and Walmart ($917B). 

To complete the IPO at its target, investment banks will need to find buyers who value SpaceX at that price – a decision that is based on factors including financial performance, revenue projections, growth potential, and competition.