SpaceX Targets US$1.77 Trillion Valuation

Elon Musk’s SpaceX bypassed a traditional price range for its initial public offering (IPO), setting a fixed price of US$135 a share to target a US$1.77 trillion valuation.

In an updated prospectus filed with the Securities and Exchange Commission (SEC), the company outlined plans to sell 555.6 million shares. The offering would raise US$75 billion, making it the largest US market debut on record and eclipsing Alibaba (NYSE:BABA) Holding’s 2014 listing.

Assuming the closure of pending transactions involving EchoStar spectrum and Cursor, the US$1.77 trillion market capitalization would make SpaceX the seventh-most valuable public company in the US, placing it above Tesla’s (NASDAQ:TSLA) US$1.6 trillion valuation.

SpaceX currently operates three distinct business lines: its core orbital launch infrastructure, its profitable satellite internet provider Starlink, and its newly consolidated artificial intelligence arm, xAI.

SpaceX absorbed xAI in a February all-stock merger that valued the combined entity at US$1.25 trillion.

While Starlink generated US$3.26 billion in the latest quarter and accounted for 69 percent of total revenue, the company overall remains unprofitable. SpaceX recorded a net loss of US$4.28 billion in the latest quarter, following a US$4.94 billion loss in 2025.

The deficit is driven primarily by the xAI unit, which posted a US$2.5 billion quarterly loss, while the core space division reported a US$619 million operating loss. The company holds a US$41.3 billion accumulated deficit.

SpaceX explicitly stated in its S-1 filing that it has “a history of net losses and may not achieve profitability in the future,” noting that it expects to incur significant capital expenditures to develop untested technologies before its AI products become profitable.

Equity analysts have flagged the valuation multiple and the AI unit’s cash burn as immediate risks. Morningstar issued a discounted cash flow valuation of US$780 billion, roughly 48 percent below the private market valuation, citing xAI as an “indeterminate” economic moat.

“We think the company has been significantly overvalued and investors will have opportunities to buy the stock at more attractive levels after the IPO,” Morningstar analysts wrote.

Despite the valuation concerns, the structure of the offering and index mechanics are expected to drive immediate demand. Musk will retain over 82 percent of voting power through a super-voting share class on roughly 42 percent of the equity The company has also reserved up to 5 percent percent of the IPO stock for a direct share program targeting specific employees.

The S-1 filing also details expanding related-party transactions and cross-holdings between SpaceX and Tesla. Tesla currently holds 18.99 million SpaceX shares, valued at US$2.56 billion at the IPO price.

Concurrently, SpaceX’s xAI unit purchased US$269 million in Tesla megapacks in April, following US$430 million in similar purchases last year.

“We have historically…