Is Elon Musk’s SpaceX Really Worth $1.75 Trillion?
Later this week, Elon Musk’s SpaceX is expected to issue stock to investors in what is shaping up to be the biggest initial public offering ever. The company has said it will issue 555,555,555 shares at a price of $135, which would value it at about $1.75 trillion. Musk, who is already the world’s richest person thanks to his stake in Tesla, will own about forty-two per cent of SpaceX after the I.P.O., and he stands to become the world’s first trillionaire.
TL;DR
- SpaceX plans to issue stock to investors at $135 per share, valuing the company at approximately $1.75 trillion.
- The company has a history of engineering achievements, including reusable rocket components and providing services to NASA and the Pentagon.
- SpaceX's Starlink broadband service has over twelve million subscribers in 164 countries and has been crucial in Ukraine and disaster relief.
- Despite significant revenues, SpaceX reported a net loss of nearly $5 billion due to capital investments.
- The company is acquiring xAI, integrating its AI chatbot Grok into its offerings to justify its high valuation, though xAI has shown limited success and incurred substantial losses.
- Skepticism exists regarding the company's AI division and the feasibility of its plan for orbital data centers, with some analysts estimating the company's value much lower than the IPO target.
- SpaceX is offering 30% of its shares to retail investors, a move some critics attribute to Musk's strategy of creating a 'retail cult stock'.