Elon Musk’s space transportation company SpaceX is targeting a raise of $25 billion through an initial public offering (IPO) in the coming year, in a move that will give it a valuation of over $1 trillion, making SpaceX one of the world’s most valuable companies, thanks in large part to the rapid expansion of its Starlink satellite internet business as well as plans to launch a direct-to-mobile service.
SpaceX is currently engaged with banks about the IPO expected to come in June or July 2026. According to Crunchbase, SpaceX is the world’s second most-valuable private startup after ChatGPT.
The valuation of SpaceX has surged dramatically since its founding in 2002, when the startup was valued at just $27 million. However, the company saw its valuation jump to ~$12 billion by 2015, thanks to major investments by Fidelity and Google (GOOG). The rapid expansion of the Starlink satellite constellation, along with contracts with NASA and successful rocket launches fueled further growth. A major funding round in 2020 pushed the valuation to $46 billion.
Interestingly, SpaceX’s valuation instantly puts it in the ballpark of its famous EV peer, Tesla Inc. (NASDAQ:TSLA), currently with a market cap of $1.39 trillion after 15 years as a public company. Tesla’s 2010 IPO valued the company at around $2.2 billion. SpaceX’s IPO will put the rocket maker in the rarefied trillion-dollar club, with only 10 companies across the globe currently valued at a trillion dollars or more.
Saudi Aramco‘s 2019 IPO still stands as the biggest in history, valuing the company at around $1.7 trillion to $1.87 trillion, raising $25.6 billion by selling just 1.5% of shares, making it the world’s largest IPO ever. Still, it fell short of the initial $2-trillion target due to investor skepticism and concerns about transparency. The valuation at listing was roughly $1.7 trillion, but quickly rose after trading began, nearing the $2 trillion mark as local investors bid up the shares.
By Alex Kimani for Oilprice.com
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