Elon Musk’s SpaceX (PC:SPXEX) is reportedly planning an initial public offering (IPO) in mid to late 2026, potentially valuing the space exploration company at an unprecedented $1.5 trillion. According to Bloomberg, SpaceX aims to raise over $30 billion, which would make it one of the largest IPOs in history. The company has begun discussions with banks about a potential public listing, possibly as early as June or July, according to sources.
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The pressing question is whether shareholders of Musk’s other venture, Tesla (TSLA), might gain access to SpaceX’s IPO. At Tesla’s November 6 shareholder meeting, Musk expressed his desire to enable Tesla shareholders to participate in SpaceX’s growth. He stated, “I’ve been giving a lot of thought to how to give people access to SpaceX stock.”
SpaceX’s Valuation Is Rising Rapidly
SpaceX has seen its valuation grow at a rapid pace, driven by the success of its Starlink satellite internet business and rocket launch services. Starlink accounts for approximately 60% to 70% of the company’s revenue, with Falcon 9 contracts and the Starship moon and Mars rockets playing supporting roles. SpaceX projects annual revenues of about $15 billion in 2025, rising to $22-$24 billion in 2026.
Where Will SpaceX Use the Funds?
SpaceX intends to use part of the funds raised from the IPO to develop space-based data centers, including purchasing the necessary chips, according to sources familiar with the matter. Musk made similar remarks recently during an event with Baron Capital.
Musk also pointed out that SpaceX has been cash flow positive for years and does not currently need to raise capital. Instead, the company conducts stock buybacks twice a year to provide liquidity for employees and investors. He added that the company’s valuation growth stems from progress in Starship and Starlink, along with securing global direct-to-cell spectrum, which significantly expands its market.
Public Listing Faces Challenges
Musk has been cautious about the challenges that come with being a publicly traded company. At a recent meeting, he outlined several drawbacks, including increased litigation risks, quarterly performance pressures, and heightened regulatory and compliance burdens. Despite these concerns, he acknowledged that going public might be beneficial for SpaceX.
Although speculation about a SpaceX IPO has circulated for some time, Musk has previously dismissed these rumors, including one suggesting an $800 billion valuation. This time, however, Musk has remained silent, suggesting the recent reports could be accurate.
Is Tesla Stock a Buy, Hold, or Sell?
Analysts remain cautious about Tesla’s long-term outlook amid declining EV sales. On TipRanks, TSLA stock has a Hold consensus rating based on 12 Buys, 12 Holds, and 10 Sell ratings. The average Tesla price target of $383.54 implies 13.8% downside potential from current levels. Year-to-date, TSLA stock has gained 10.2%.
