economy
SpaceX lowers IPO target to $1.8T, marketing starts 4 June
SpaceX has lowered its IPO valuation target from above $2 trillion to at least $1.8 trillion after investor consultations. Marketing begins as soon as 4 June with pricing as early as 11 June. The company reported $18.7 billion in 2025 revenue but swung to a $4.94 billion loss after acquiring xAI.
TL;DR
- SpaceX is targeting a valuation of at least $1.8 trillion for its IPO, a reduction from previous goals.
- The company aims to raise up to $75 billion, potentially making it the largest IPO in history.
- Revenue increased to $18.7 billion in 2025, but SpaceX reported a $4.94 billion loss due to xAI integration costs.
- The acquisition of xAI transformed SpaceX into an AI services and infrastructure company.
- The reduced valuation target is attributed to standard IPO pricing dynamics rather than a lack of confidence.
- SpaceX's valuation would still make it one of the most valuable companies globally.
- Elon Musk's control structure (79% voting power despite 42% equity) has raised governance concerns.
- SpaceX's dominance in commercial launch is highlighted by a rival's launchpad destruction.
- The IPO pitch emphasizes Starlink's satellite internet business and xAI's AI infrastructure.
- A large 30% retail investor allocation is included, which could increase volatility.