SpaceX is adjusting its initial public offering target, reducing it from over $2 trillion to a revised figure of $1.8 trillion. This valuation still positions it as one of the most ambitious IPOs in history, significantly surpassing previous efforts.
#What are the Details Behind the IPO?
The company plans to offer around 555.6 million shares, each priced at $135, seeking to raise about $75 billion in capital. SpaceX filed its S-1 registration with the Securities and Exchange Commission on May 20, 2026, and anticipates starting a formal roadshow as early as June 4. Trading is expected to commence on the Nasdaq under the ticker symbol SPCX on June 12.
Last year's revenue stood at $18.7 billion, primarily due to Starlink's robust subscription model. However, SpaceX also reported a net loss, partly linked to expenses related to its xAI acquisition. At the proposed valuation of $1.8 trillion, investors would essentially pay 94 times the company's trailing sales.
#How Has the Valuation Changed Recently?
The valuation process has been quite dynamic. In December 2025, SpaceX was valued at approximately $800 billion through private tender offers. Then, after its merger with xAI in February 2026, this value increased significantly to $1.25 trillion. Experts from Morningstar have expressed concerns regarding the disparity between private valuations and what public market fundamentals may truly support. They argue that the private valuation appeared to be inflated.
On the flip side, bullish investors highlight the expanding subscriber base of Starlink as a vital driver for growth. The service has become the cornerstone of SpaceX's revenue, aiming to provide broadband access to underserved and remote areas worldwide, creating potential for substantial long-term growth.
#What Are the Implications for Investors?
A successful capital raise of $75 billion would eclipse Saudi Aramco's 2019 IPO, which set the record by bringing in $25.6 billion. Nevertheless, it's essential to remember that SpaceX remains unprofitable at this point, and the costs arising from the xAI acquisition add complexity to its financial profile. Given the high sales multiple, the room for execution errors diminishes significantly.