SpaceX targets $1.75 trillion valuation in all-primary IPO next week, sources say

The IPO is expected to be structured as an all-primary offering, meaning all proceeds would go to the company and existing SpaceX shareholders will not be able to sell any of their shares in the IPO, the sources said. Shareholders would likely have to wait until at least after the company reports its first quarterly earnings, under a staggered lockup, Reuters previously reported.

After some early meetings with investors, or a “testing the waters” process, the company has indicated it plans to raise at least $75 billion in its base offering, the sources said, requesting anonymity to discuss confidential information. ‌The greenshoe option, set at ⁠15%, would ⁠allow underwriters to sell additional shares if investor demand exceeds expectations, one of the sources said.

Pure primary offerings are not unprecedented, although they are not the most common structure for large listings, which are often a mix of primary and secondary shares allowing early investors to sell down stakes.

In 2021, for instance, Rivian Automotive’s IPO was structured entirely as a primary issuance, with early backers including Amazon and Ford not selling shares at the time of listing as the company raised capital to fund expansion.

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Other features of the proposed offering that diverge from conventional public listings are early inclusion in the Nasdaq 100 index and unusual provisions giving Musk effective control over the board and his roles as chief executive and chairman.
The move marks the first time SpaceX has communicated specific fundraising and valuation targets to banks after early investor meetings, as it prepares for what is expected to be the largest-ever IPO. Reuters ⁠previously reported the ‌company was considering a preliminary valuation of around $1.75 trillion. The roadshow for the IPO is set to begin on Thursday, Reuters previously reported. The plans, including the size of the raise, are subject to change as investor meetings get under way, the sources cautioned.

The IPO will give public investors a rare opportunity to ⁠buy into Musk’s vision for space, satellite communications and artificial intelligence through SpaceX, which has emerged as the crown jewel of the world’s richest person’s business empire.

SpaceX did not respond to a request for comment.

MEGA IPO WAVE
The listing is expected to kick off a wave of mega IPOs, with SpaceX, OpenAI and Anthropic together poised to add almost $4 trillion in market capitalization to public markets and intensify competition for investor dollars.

Unlike most IPO candidates, SpaceX lacks a clear public market benchmark. Analysts say investors must piece together comparisons from aerospace, telecom and defense companies while factoring in Starlink’s growth potential and Musk’s long-term ambitions, making valuation a complex task.

For many investors, the bet is as much on Musk as on SpaceX. His track record at electric-vehicle company Tesla and his ability to galvanize retail traders could likewise spur strong demand for shares, as his reputation has done for past ventures.

Still, two of SpaceX’s three businesses are burning cash, with only its connectivity segment, home ‌to the Starlink satellite constellation, generating profits and widely viewed as the company’s cash cow.

Beyond rockets and satellites, SpaceX is pitching investors a future that includes ambitious projects such as data centers in orbit, positioning itself to benefit from a surge in AI-related infrastructure spending.

SpaceX merged with Musk’s AI startup xAI earlier this year in a deal that valued the rocket and satellite ⁠company at $1 trillion and the developer of the Grok chatbot at $250 billion.

Its revenue rose to $4.69 billion in the three months ended March 31 from $4.07 billion a year ago. Losses widened to $1.27 per share versus 18 cents per share over the same period.

In 2025, SpaceX’s revenue jumped to $18.67 billion from $14.02 billion a year earlier, but the company swung to a net loss of $4.94 billion from a profit of $791 million.

Since a large part of SpaceX’s pitch to investors hinges on Musk, some corporate governance concerns could give investors pause, experts have said. Measures, including a dual-class share structure laid out in the IPO prospectus, concentrate voting power in the hands of Musk and a small group of insiders.

SpaceX is aiming to trade on the Nasdaq under the ticker symbol “SPCX.” The debut is expected as early as June 12, Reuters has previously reported, after the company accelerated the timeline of its IPO.

Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup and J.P. Morgan are the joint book-running managers for the offering, leading a syndicate of global investment banks underwriting the deal.