SpaceX news covering Starship launches, Falcon 9 missions, Starlink satellite internet, Mars colonization plans, and space industry developments.
SpaceX filed for an IPO on Wednesday, offering 555.6 million Class A shares at $135 each, targeting a record $75 billion valuation. Elon Musk retains 82.4% voting power. Retail investors can buy shares through platforms including Schwab, Fidelity, and Robinhood. SpaceX recently expanded into non-space industries by acquiring Musk's xAI.
SpaceX is targeting a $75 billion IPO with 555.6 million shares at $135 apiece, which would be the largest IPO on record. Morningstar analysts estimate SpaceX's reasonable valuation at $780 billion, far below the $1.77 trillion market value implied by the IPO price. The current global IPO record is $29.4 billion by Saudi Aramco in 2019.
Oppenheimer analysts warned that SpaceX's Starlink will disrupt the $1.6 trillion US communications industry, with legacy broadband providers like AT&T most at risk. AT&T's stock experienced its worst day in 8 months due to concerns over SpaceX's satellite broadband threat. The firm raised its 2035 space revenue estimate to $800 billion.
SpaceX is developing Starfall, an uncrewed capsule for in-orbit manufacturing and point-to-point cargo delivery. The disk-shaped craft is 10.2 feet wide, carries up to 2,205 pounds, and has FAA approval for test reentries into the Pacific Ocean. SpaceX aims to make it operational by decade's end.
This commentary argues that SpaceX's planned IPO, seeking a $1.75 trillion valuation, is overambitious given its modest revenue and net losses. It compares SpaceX to past giant IPOs like Saudi Aramco and Visa, which performed poorly after launch, warning investors of potential disappointment despite the hype.
SpaceX has obtained a tax exemption for its $55 billion AI chip plant despite local opposition. The exemption was granted by local authorities, overriding community backlash against the project.
A Bloomberg report found ten Trump administration officials disclosed holdings in SpaceX and xAI worth up to $43.8 million. The IPO, expected as soon as June 12, could significantly increase their wealth. Officials may have since sold shares without public disclosure.
Jefferies Financial Group is now the preferred bank for investors betting against SpaceX, after being excluded from the IPO syndicate. The snub has created a unique opportunity for short-selling services, with even Jefferies' own bosses seeing potential.
SpaceX's IPO may be added to broad index funds within five trading days due to relaxed profitability and float rules. The company filed its S-1 on May 20, targeting a $1.8 trillion valuation with a record $75 billion raise, making it twice as large as any previous listing.
Investor Michael Burry expressed skepticism that SpaceX and Anthropic are worth $1 trillion, citing hype and technical challenges. He noted SpaceX's S-1 filing shows $18.7 billion revenue and $4.9 billion net loss, questioning its $2 trillion valuation target. Burry also called Anthropic's AI model development too expensive and expects computing power to become commoditized.