SpaceX is set to sell a portion of its shares to the public on June 12, testing investor appetite for Elon Musk's space and artificial intelligence plans. Bankers leading the offering have put a $1.75 trillion target valuation on the company. That would put it among the 10 most valuable corporate entities globally, even though the business lost nearly $5 billion last year.
The company was built on two decades of reusable rocketry and satellite launches, but the public offering is also a bet on artificial intelligence. The prospectus puts its total addressable market at $28.5 trillion, with $26.5 trillion of that tied to AI.
Corporate bundling
The bundled structure brings together several distinct businesses under one umbrella:
- The Starlink satellite communications network, a profitable unit generating significant income that is estimated to be worth around $300 billion on its own.
- Musk's artificial intelligence venture, xAI, alongside plans to construct solar-powered data centers in space.
- The core rocket manufacturing and launch division, which has capabilities that exceed those of any other commercial enterprise or national space program.
Prospective shareholders in the public offering will get ownership with almost no structural influence. Musk is listed as the company's founder, chief executive, chief technical officer, and chairman of the board. Although he holds 42% of the underlying equity, his shares carry extra voting rights that give him effective control of 85% of the company.
The partial sale is the first of several expected public-market tests for the AI economy. SpaceX is initially offering only a 5% stake worth roughly $75 billion, adding a large block of new shares to a market that may also see listings from AI competitors such as Anthropic and OpenAI.
