Under Elon Musk’s direction, the company aims for a remarkable valuation of about $1.5 trillion, bringing it close to the market value of Saudi Aramco achieved during its historic 2019 IPO, which raised $29 billion.
Insiders say SpaceX is considering a public listing as early as mid-to-late 2026, although market fluctuations might delay this until 2027. The company has not yet provided an official comment.
The news regarding the potential IPO has created waves in the space industry, with EchoStar Corp., which plans to sell spectrum licenses to SpaceX, rising by as much as 12% in New York. Rocket Lab Corp., another space transportation firm, also experienced gains of up to 4.3%.
Recent reports indicate that Musk and SpaceX’s board have been actively preparing for the IPO by making essential hires and finalizing strategies for capital allocation. This follows a recent insider share sale that helped establish the company’s latest valuation.
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A significant reason for SpaceX’s urgency to enter the public markets is the rapid growth of its Starlink satellite internet service, including the promising direct-to-mobile venture, along with the development of the Starship rocket for lunar and Martian exploration. Revenue is projected to reach approximately $15 billion in 2025, escalating to $22–24 billion in 2026, with Starlink contributing significantly.
Some of the IPO proceeds may be allocated towards establishing space-based data centers, such as acquiring the specialized chips required to operate them. In the current secondary offering, SpaceX has priced shares at around $420, elevating its valuation beyond $800 billion. Employees will be permitted to sell about $2 billion worth of stock, while the company intends to buy back some shares to ensure liquidity.
“SpaceX has been cash-flow positive for several years and conducts periodic stock buybacks twice annually to provide liquidity for employees and investors,” Musk stated on 6 December via his social media platform X. He mentioned that the growth in valuation hinges on advancements with Starship and Starlink, as well as acquiring global direct-to-cell spectrum, which would significantly expand the company’s market reach.
There has been ongoing discussion about spinning off Starlink into a separate publicly traded entity, a concept first introduced by President Gwynne Shotwell in 2020. Musk has historically been prudent regarding timing, with CFO Bret Johnsen noting in 2024 that a Starlink IPO is more likely “in the years to come.”
Key investors in SpaceX include venture firms like Founders Fund, 137 Ventures, Valor Equity Partners, Fidelity, and Google, a subsidiary of Alphabet Inc.
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At the anticipated valuation, selling just 5% of the company could generate roughly $40 billion, easily exceeding Saudi Aramco’s $29 billion record and making SpaceX’s IPO the largest in history. Comparatively, Aramco offered only 1.5% of its shares, significantly lower than the usual amount for public listings.
