Elon Musk could become world’s first trillionaire; SpaceX IPO nears $1.7 trillion value

New York: The space technology company SpaceX is preparing to go public this month in what could become the largest initial public offering (IPO) in stock market history.

The firm, formally known as Space Exploration Technologies Corp., said on Wednesday that it plans to raise up to $75 billion through its public listing.

The move is being widely watched across global financial markets as a landmark moment for technology IPOs and space industry investment trends.

Share sale details and valuation expectations

According to the filing, SpaceX will sell 555.6 million shares at $135 each as part of its initial public offering.

Based on these figures, the IPO would generate proceeds significantly higher than previous record holders, including the $26 billion raised by Saudi Aramco in 2019.

The offering values SpaceX at approximately $1.77 trillion. This would place it above almost all companies in the S&P 500 index, where only a handful of firms are currently worth more. The most valuable among them is Nvidia, with a valuation of $5.2 trillion.

Elon Musk’s voting control and ownership structure

The amended prospectus also outlines the level of control that CEO Elon Musk would retain after the company goes public.

Musk serves as chief executive, chief technical officer and chairman of SpaceX. His influence will largely come from 5.22 billion Class B shares, which carry 10 votes per share.

The filing states that Musk would hold around 82.4 percent of total voting power, giving him dominant control over corporate decisions even after the IPO.

Musk’s net worth could cross trillion-dollar milestone

Financial estimates suggest the IPO could significantly increase Musk’s wealth.

Currently, Forbes values Musk’s net worth at around $826 billion, with his SpaceX stake estimated at $542 billion. That valuation is based on a previous company estimate of $1.25 trillion.

If SpaceX reaches the newly projected $1.77 trillion valuation, Musk’s holdings could increase by roughly $223 billion, pushing his net worth towards the trillion-dollar mark.

However, analysts note that much of Musk’s wealth remains tied to unrealised stock holdings that have not been sold.

Financial losses despite massive revenue growth

Despite its high valuation and global expansion, SpaceX continues to operate at a loss.

The filing shows the company lost $2.6 billion from operations last year, even though it generated $18.7 billion in revenue. Losses have reportedly continued into the early part of this year.

This highlights the company’s aggressive investment strategy in space infrastructure, satellite systems and long-term exploration projects.

Mars colonisation and long-term space ambitions

The IPO documentation also outlines ambitious long-term goals for the company.

SpaceX describes plans to support human missions to the Moon and potentially Mars. In its filings, the company references the idea of building a “permanent human colony” on Mars with “at least one million inhabitants”.

It also warns of existential risks to humanity, suggesting such efforts are needed to avoid catastrophic outcomes that could leave humanity facing “the same fate as the dinosaurs”.

AI strategy and expansion into advanced technologies

The company is increasingly linking its future growth to artificial intelligence.

SpaceX has suggested potential AI-related revenues of up to $26.5 trillion, although this depends on highly speculative technological developments such as building data centres in space, which is not currently feasible.

Musk has also been expanding his wider AI ecosystem through his company xAI, founded in 2023. Its main product, the chatbot Grok, has received mixed reviews.

Industry analyst Arnal Dayaratna from IDC said Grok is “less impressive than anything that we see from any other major player in the space”, naming competitors such as OpenAI, Anthropic and Google’s Gemini.

Despite this, analysts say SpaceX could still become a significant AI player due to partnerships, including computing collaborations with Anthropic and licensing arrangements linked to AI coding tools.

Cursor deal and AI software expansion plans

The report also references a major agreement involving the AI coding tool Cursor.

Under the deal, SpaceX is expected to gain rights to acquire Cursor for around $60 billion later this year. The integration is expected to expand its enterprise AI capabilities and compete with tools like ChatGPT and Claude.

Starlink expansion and use of IPO funds

SpaceX says proceeds from the IPO will be used to expand its infrastructure for both rocket development and AI systems.

A major focus will be scaling its satellite internet network Starlink, including upgrades linked to “Starlink Mobile” services.

The company also plans continued investment in space exploration programmes and global connectivity infrastructure.

Nasdaq listing plans and trading timeline

SpaceX intends to list its shares on the Nasdaq stock exchange under the ticker symbol “SPCX”.

Trading could begin as early as next week if regulatory and market conditions allow.

Broader IPO wave: Anthropic and OpenAI expected to follow

The SpaceX listing is also seen as the beginning of a wider wave of major technology IPOs.

Earlier this week, Anthropic submitted a confidential filing with the US Securities and Exchange Commission, signalling the start of its own IPO process.

Meanwhile, OpenAI has not yet filed official paperwork but is widely expected to move towards a public listing in the future.

Dan Ives of Wedbush Securities said the SpaceX debut could mark the first major test for public markets after a prolonged slowdown in IPO activity, with AI-focused companies potentially leading the next wave of listings.

He added that SpaceX could pave the way for similar blockbuster debuts from AI giants such as Anthropic and OpenAI.

Agency inputs