SpaceX has been alluding its move public for a while, but it seems that the offering will finally be achieved this year.
Here are the key stats to start:
Current valuation = $800 billion
IPO target = $1.5 trillion
As you can see there is a significant $700 billion disparity between SpaceX’s current valuation and their target one, which they are hoping to achieve before they go public.
SpaceX’s motives for going public
– A need for a huge amount of capital to fund their incredibly capital intensive operations and projects
– Early investors and employees want to cash out, the IPO would create liquidity allowing investors to get their long awaited returns.
– Competitive pressure, rivals such as Amazon’s Kuiper and China’s satellite programs are closing in.
SpaceX’s methods for growth
SpaceX have used a variety of methods to close the gap between their current valuation and their target, including:
1. They bought a large segment of the wireless spectrum
In September 2025, SpaceX bought wireless spectrum (sort of like radio frequencies) from EchoStar.
The cost: $17billion (50% cash, 50% SpaceX stock)
The significance: SpaceX no longer has to partner with T-Mobile to offer phone service from satellites.
Potential revenue increase: $10-20 billion annually
2. They are getting the Starship ready for usage
SpaceX’s new mega-rocket is such bigger than the current Falcon 9 and it can therefore carry roughly 10x more load and a tenth of the price.
It’s important to not that the rocket only passed half of its test flights in 2025, so its roll out is far from a certainty.
Projection for 2026:
- 25+ more test flights
- 5 new launch pads across Texas and Florida
- Hopes of being fully operational by the end of the year
3. Their rapid growth
There’s no doubt that the business’s rapid growth will be attractive to investors, the proof is in the stats alone. Below is Starlink (the satellite internet company run by SpaceX)’s customer number per year:
2023: 2.3 million
2024: 4.6 million
2025: 8.5 million
The Banks and Law Firms involved
The Lead Underwriters
– Bank of America
– Morgan Stanley
– Goldman Sachs
– J.P Morgan Chase
The Law Firms (yet to be announced but predicted by previous history)
– Latham & Watkins (their historical counsel)
– Wilson Sonsini (also their historical counsel)
– Skadden (the underwriters’ counsel)
– Davis Polk (also the underwriters’ counsel)
The legal implications
1. Loss of Privacy
Pre-IPO, SpaceX’s financials are a secret, but this will change once they become private and they will have to be transparent with shareholders through quarterly reports forever.
This means that their competitors will see their exact pricing, costs and profit margins which could lead to decrease in the advantage they have.
2. ITAR Restrictions
As SpaceX tech is classified as ‘defence articles’ under International Traffic in Arms Regulations, the only people who will be permitted to buy shares will be U.S Citizens, green card holders and U.S companies, meaning a significantly reduced market.
3. The CEO (Elon Musk) maintains control
The shares are split into different classes:
Musk has class B shares which count for 10 votes each
Whereas the public has class A shares which only count for one
This a method used by Musk to ensure that he retains the locus of control and decision-making autonomy.
Questions to Ask:
Will SpaceX be liberated or restrained by their move public?
Will other private giants like Anthropic and OpenAI follow in their footsteps?
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Written by George Hocking
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