The TL;DR
SpaceX has lowered its IPO valuation from more than $2 trillion to at least $1.8 trillion after consulting with investors. Marketing begins as soon as June 4th with prices beginning on June 11th. The company reported $18.7 billion in revenue for 2025 but reached a loss of $4.94 billion after acquiring xAI.
SpaceX is looking to raise at least $1.8 trillion in its initial public offering, down from the $2 trillion-plus it had targeted as recently as April, according to Bloomberg. The target was adjusted after consultation with advisors and investors, and could still go higher depending on feedback during the official marketing period, which is expected to start as soon as June 4. The price may arrive as early as June 11.
The company is seeking to raise up to $75 billion in capital offerings, which would make it the largest IPO in history. SpaceX will trade on Nasdaq and Nasdaq Texas under the ticker SPCX. Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JPMorgan are leading the deal with 18 other banks.
Numbers on the back of the field
SpaceX’s S-1 filing on May 20 revealed a company that has grown rapidly but is still unprofitable at its current rate. Revenue increased from $14 billion in 2024 to $18.7 billion in 2025. But the company went from a profit of $791 million in 2024 to a loss of $4.94 billion last year, driven by the costs of integrating xAI and expanding the AI infrastructure.
The purchase in February of Elon Musk’s AI company xAI, which includes the Grok chatbot and the social network X, gave SpaceX a total of $1 trillion and xAI a value of $250 billion at the time. The merger transformed SpaceX from a rocket and Internet satellite company into what its IPO pitch described as an AI and infrastructure services company with an addressable market of $28.5 billion, including orbital data centers and space-based computing.
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Why is the rating down?
The reduction from $2 trillion-plus to $1.8 trillion reflects a normal fluctuation in IPO prices rather than a crisis of confidence. Companies often set initial targets and then scale based on what institutional investors say they are willing to pay. At $1.8 trillion, SpaceX would still come out as one of the most valuable companies on any exchange, bigger than Amazon and trailing only Apple, Nvidia, Microsoft, and Alphabet.
The financial structure surrounding Musk may be a factor. IS-1 issued a $20 billion 4.58% bridge loan that replaced $17.5 billion in high-interest debt from X and xAI, cutting annual interest costs by nearly half. Musk controls about 79% of the voting power despite owning about 42% of the equity, a two-tier structure that some investors have flagged as a management concern.
The Blue Origin explosion adds context
The news of the price test came the same night that Blue Origin’s New Glenn rocket exploded during a fixed-fire test at Cape Canaveral, destroying the vehicle and its only launch pad. This incident underscores SpaceX’s dominance in commercial launch. SpaceX is targeting 140 to 145 launches by 2026 and has already completed more orbital missions than any other provider. Blue Origin had planned 8 to 12 launches this year.
SpaceX has had its setbacks, including the failure of the Starship V3 booster three weeks before the IPO. But the company has built enough redundancy, with multiple pads and a proven fleet of Falcon 9 rockets, that individual failures have not disrupted its commercial operations. Blue Origin’s loss of its one New Glenn pad is a qualitatively different problem.
Next
The formal marketing period, known as a roadshow, will give SpaceX’s management team about a week to pitch to investors. The foundation focuses on Starlink’s satellite internet business, which is expected to generate $10.6 billion in revenue by 2025 and serves more than 10 million subscribers, and the AI infrastructure ambitions of the xAI division.
At $1.8 trillion, SpaceX will be worth an estimated 96 times 2025 earnings, a multiple that reflects investors’ expectations of continued growth over current earnings. The IPO includes an unusually large 30% equity stake for traders, a decision that could boost demand on the first day but also introduce volatility. Whether the final price falls to $1.8 trillion, more, or less will depend on how institutional investors react to the company that lost nearly $5 billion last year but claims to be building the infrastructure for an AI-powered space economy.
